Townsville City Council Annual Report 2024-2025

OUR ANNUAL REPORT

Council measures its performance in its Annual Report in terms of progress made in implementing the Corporate Plan.

The Annual Report provides information about Townsville City Council and delivery of:

 Townsville 2021–2026 Corporate Plan

 Budget and Operational Plan 2024/25, including Water and Resource Recovery Performance Plans.

In accordance with section 45(b) of the Local Government Act 2009, Council has established commercial business units for its significant water and resource recovery business activities.

Council reports its performance by publishing:

 Townsville Dashboards

 Quarterly Performance Reports

 Annual Report

 Ordinary Council Reports.

Council’s strategies and plans include:

 Townsville 2021–2026 Corporate Plan: Outlines the city’s shared vision for Townsville and the key issues and priorities for Council over the next five years and beyond

 Budget and Operational Plan 2024/25: Council’s annual plan to allocate resources to deliver specific projects, activities and events in pursuit of the Corporate Plan goals

 Townsville City Plan: Sets the direction for development and growth over the next 25 years

 Strategic Asset Management Plan: Articulates the Asset Management System Model, Asset Management Framework and Asset Management Capability Delivery Model for Council

 Townsville City Deal: A 15-year commitment between the Australian Government, Queensland Government and Townsville City Council to work together to plan and deliver transformative outcomes for Townsville and its residents.

This Annual Report is part of Council’s commitment to open, transparent and accountable governance. It identifies community service delivery and demonstrates how Council is meeting its strategic objectives.

Where to get a copy of this Annual Report 2024/25

Our reports are available to view in full, as a flipbook, at Council’s website. Go to https://www.townsville.qld.gov.au/about-council/corporate-information

Feedback on this report

We welcome our community’s feedback on this Annual Report for 2024/25. Please send feedback to enquiries@townsville.qld.gov.au

MESSAGE FROM THE MAYOR MESSAGE FROM

Thisyearhasbeenoneofmomentum,drivenby advocacyandcollaboration.

Ourcity'svibrancyhasbeenondisplay,withevents liketheNTI500Supercars,world-classexhibitionsat ourartgalleriesandthebiennial'OurTownsville' festival,whichalonedrewacrowdof38,000people. TheannouncementthatTownsvillewillhostfour RugbyWorldCupmatchesin2027aswellassailing andfootballaspartofthe2032Olympicsreinforces ourreputationastheEventsandSportsCapitalof theNorth.

Council’snewCorporatePlan,adoptedinFebruary 2025aftercommunityconsultation,willguidethe city’sgrowthandplanningduringthenextfiveyears.

Deliveringonourcommitmenttocoreservices,the Councilinvestedover$193millionintocapitalworks, includingroadinfrastructureandmaintenance, footpathrenewalsandimprovementstothewater andwastewaternetworks.

Welookedtothefuturewithreviewsofour TownsvilleCityPlandesignedtosupportbuilding andlandusedecisionsthatkeepourcommunitysafe andimprovefloodresilience.Thisworkalsoincluded areviewoftheLocalGovernmentInfrastructurePlan andtheimplementationoftheLocalHousingAction Plan.TheseplansensureTownsvillegrowsinaway thatprotectswhatweloveaboutourlifestyle,while supportingpopulationgrowthandcreatingnew opportunities.

Everysuccesshasbeentheresultofcollaboration betweenCouncil,communityandourstrategic partners,andIamproudofwhatwehaveachieved together.

Movingforward,ourfocuswillremainonlong-term financialsustainabilitywhiledeliveringthecore servicesthatmattermosttoourcommunity.

Cr Ann-Maree Greaney Acting Mayor

THE CEO

As CEO of Townsville City Council, I am proud to present the 2024/25 Annual Report.

Over the last twelve months our region saw accelerated development activity, with strong growth in approvals and construction driving economic confidence. Council implemented our Housing Incentives and City Activation Policy, which stimulated further investment and supported housing availability, while also rolling out our Local Housing Action Plan.

Townsville recorded its wettest year on record with rainfall and widespread flooding testing our city’s resilience. The development of the Event Specific Local Recovery Action Plan provides a clear path for recovery, ensuring affected communities are supported and essential services restored quickly.

We continued to focus on financial sustainability, operational efficiencies and maintaining over $10 billion worth of assets, including roads, water and wastewater infrastructure, while too recovering from a record-breaking weather event.

Looking ahead, innovation and strategic partnerships are set to drive greater efficiencies and create better value from every dollar spent in Council’s 2025/26 Budget and Operational Plan.

A major change is moving to a three-year rolling capital plan, which will allow for smarter scheduling and provide flexibility in responding to emerging and shifting community needs.

This has been a year of significant progress, and I would like to thank our Councillors and Council staff for their dedication to both serving our community and realising our goal to grow Townsville.

As we move through the next financial year, I am confident we are on the right path. Together, we will continue building a globally connected community driven by lifestyle and nature.

JoeMcCabe ChiefExecutiveOfficer

Population 1

Projected population by 20462 1.55% Population growth rate (2023 to 2024)3 36 years Median age of resident4 49,777 Families4 00

Population born overseas4

(2023-24}5

Libraries

Mobile library9

Rateable properties 1,800km+ Roads9 Land area8 3 World-class botanical gardens9 373 Parks9

t=f' Off-leash )})tr dog parks9

Dams9 _l~ 600+ CCTV security cameras9

Aquatic facilities, including 4 pools9

?~ Stinger V~ 1 Majo~ nets9 --.=~::~:::•,::~J l performing arts venue9

TOWNSVILLE PROFILE AND DEMOGRAPHICS

Total Land Area: 374,201 ha

Estimated Population (2024): 204,541

Population Density: 0.54 persons per hectare

DIVISION1

Population:22,792

DIVISION3

Population:19,966

DIVISION2

Population:22,465

DIVISION5

Population:19,341

DIVISION6

Population:21,349

DIVISION4

Population:20,018

DIVISION10

Population:20,732

Source:AustralianBureauofStatistics,EstimatedResidentPopulationat30June2024.

DIVISION9

Population:18,153

DIVISION7

Population:20,434

DIVISION8

Population:19,291

GROWING TOWNSVILLE: OUR YEAR IN REVIEW

WHERE RATES & UTILITIES WERE SPENT

Council invests ratepayers’ rates and utilities back into our community. In 2024/25, every $100 was spent on the following infrastructure and service costs.

COMMUNITY FINANCIAL REPORT

Council’s operating result for the 2024/25 financial year was a reduced deficit of $3 3 million. This compares to a forecast deficit of $4.2 million reported in June 2025 with the adoption of the 2025/26 budget. The improvement in Council’s financial position further supports the long-term forecast to return to a surplus by 2026/27.

Townsville City Council spent $550.8 million this year to provide services and facilities to more than 200,000 residents. We managed $7.5 billion of assets including roads, bridges, drains, land, recreation and leisure facilities, libraries and parks for the benefit of the local and visiting community.

We generated $615 million in income to fund services and facilities via rates and utilities on properties, government grants, interest on investments and fees and charges. This income is then spent on construction, maintenance, wages, borrowing costs and other operating costs to provide services to the community like libraries, parks, pools, art galleries and waste facilities.

This report provides an explanation of Council’s Financial Statements in an easy-to-understand format. It helps our community, customers, partners and employees understand how Council has performed financially this year.

STATEMENT OF COMPREHENSIVE INCOME

The Statement of Comprehensive Income shows Council’s net result for the 2024/25 financial year, calculated using the formula: Total Income less Total Expenses equals Net Result.

Council reported a net result of $64.2 million. Primarily driven by grants received for the construction of infrastructure assets.

Council’s operating result is calculated using the formula: Total operating revenue less Total recurrent expenses.

INCOME–WHEREOURMONEY CAMEFROM

Incomeisreceivedfromratesandutilitychargeson residential,businessandindustrialproperties,fees andchargesfromCounciloperations,Stateand Federalgrants,interest,developerandother contributions.

Ratesandutilitiescontinuetobethemajorsourceof incomeforthedeliveryofCouncilservicesand infrastructuretoourcommunity.Councilcontinues tofocusonlong-termplanningandongoingrenewal andmaintenanceofinfrastructuretokeepaverage ratesincreasestoaminimum.

Council’stotaloperatingincomeincreasedby13.7% fromtheprioryearlargelydueto:

increasesacrossratesandutilitycharges

removalofearlypaymentdiscountfornonprincipalplaceofresidencepropertiesand

increaseincommercialtonnagesatthe landfill.

EXPENSES–WHEREOURMONEY WASSPENT

Council’sexpensesareforemployeecosts,materials, utilities,services,depreciationandfinancingcoststo delivercommunityservices.Thefollowing informationcoversoperationalspendingascapital spendingisaddedtothevalueofassetswhen incurred.

Depreciationandamortisationrepresentan allocationoftheuseorwearandtearoverthe expectedlifeoftheasset.CouncilhasdetailedAsset ManagementPlanstoensurethebestvalueand longestlifeisachievedforeachasset.

Council’stotaloperatingexpenseshaveincreasedby 1.6%fromtheprioryearlargelyduetoadditional costsfordisasteroperationsandrecoveryworks relatedtoJanuaryrainevent,offsetbylessoccupied positionsduringtheyear.

Graph3-OperatingExpenses2024/25

STATEMENT OF FINANCIAL POSITION

The Statement of Financial Position shows what Council owns (assets), what Council owes (liabilities) and Council’s net worth. Table 1 – 2024/25 financial position

Graph4-Councilassets-5yeartrend

COUNCIL PROPERTY, PLANT AND EQUIPMENT

WHATOURCOMMUNITYOWNS

Council’sassetsincludeinfrastructure,cash,unpaid ratesandotheramountsowedtoCouncil.

Council’slargestassetcomponentisinfrastructure whichincludesroads,pipesandbuildingsthat benefittheTownsvillecommunity.

ThevalueofCouncil’stotalassetshasincreasedfrom theprioryearby$365.6million.Themovementwas largelyattributedtoinvestmentincapitalprojects combinedwithanincreaseinthefairvalueofpipe networkassets.

WHATOURCOMMUNITYOWES

Council’sliabilitiesincludemoneyborrowedfrom QueenslandTreasuryCorporation,unpaidsupplier invoices,amountsowingtoemployeesforleave entitlementsandprovisionsforfuturelandfill capping.

Council’stotalliabilitieswere$672.5millionasof30 June2025,ofwhich$429.0millionrelatestoloans fromQueenslandTreasuryCorporation(Queensland Governmentownedlendingagency).

Totalliabilitiesincreasedby$97.9millionfromthe previousyear,whichisprimarilyrelatedtoan increaseinborrowingsandunspentgrantfunding.

STATEMENT OF CHANGES IN EQUITY

TheStatementofChangesinEquitydetailsthechangesinCouncil’sretainedearningsoverthereportingperiod andprovidesamoredetailedpresentationofthecommunityequityshownintheStatementofFinancialPosition.

COMMUNITY EQUITY

CommunityequityisrepresentedbyCouncil’snet worth:whatCouncilowns(totalassets)minus whatCouncilowes(totalliabilities).

Communityequityasof30June2025was$6.9 billion,whichis$267.7millionhigherthanthe previousyear.

Graph5showstheamountof Council’s communityequityoverthelastfiveyears.

Graph5–Communityequity: five-yeartrend

STATEMENT OF CASH FLOWS

WHERE

COUNCIL’S CASH COMES FROM AND WHERE IT GOES

TheStatementofCashFlows showsCouncil’scash inflowsandoutflows.

ThisstatementshowsCouncil’sabilitytopayitsbills tocontinuenormaloperations,payoffitsdebtsand havemoneyavailableforthe constructionofassets. Graph6showstheamountof Council’scash holdingsattheendofeachfinancialyear,overthe lastfiveyears.Cashbalancesareinfluencedby timingofgrantfundingreceived,thedeliveryof largeinfrastructureprojectsanddrawdownof borrowings.

Graph6–Councilcashholdings: five-yeartrend

FINANCIAL SUSTAINABILITY

Section 176 of the Local Government Regulation 2012 requires Council to report on specific financial sustainability ratios:

 Operating surplus ratio

 Operating cash ratio

 Unrestricted cash expense cover ratio

 Asset sustainability ratio

 Asset consumption ratio

 Asset renewal funding ratio

 Council controlled revenue ratio

 Population growth ratio

 Leverage ratio

The results of these ratios calculated in accordance with the Financial Management (Sustainability) Guideline 2024 are shown in the Current Year and Long-Term Financial Sustainability Statements that follow the Financial Statements. The graphs below show historical ratio values for the current and last four financial years as well as the five-year average.

OPERATING SURPLUS RATIO

The operating surplus ratio measures the extent to which revenue raised covers operational expenditure.

A ratio of -0.6% in 2024/25 indicates Council’s operating expenses were marginally greater than its operating income received. Council has a plan to improve and strengthen its short and long-term financial position.

OPERATING CASH RATIO

The operating cash ratio is a measure of Council’s ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation and finance costs.

A ratio of 30.2% in 2024/25 indicates Council is generating sufficient cash to fund operating activities.

Graph7-Operatingsurplusratio

2020/212021/222022/232023/242024/25

Graph8-Operatingcashratio

2020/212021/222022/232023/242024/25

UNRESTRICTED CASH EXPENSE COVER RATIO

The unrestricted cash expense cover ratio is an indicator of the uncommitted cash available to Council to meet ongoing and emergent financial demands.

Council achieved a ratio of 5.8 months in 2024/25. Council forecasts continued improvement as we strengthen our shortand long-term financial position.

ASSET SUSTAINABILITY RATIO

The asset sustainability ratio approximates the extent to which the infrastructure assets managed by Council are being replaced as they reach the end of their useful lives.

The result of 35.4% reflects deferral of renewal projects to the 2025/26 financial year, driven by prioritisation of new and major projects as well as reallocation of resources to natural disaster recovery efforts.

ASSET CONSUMPTION RATIO

The asset consumption ratio approximates the extent to which Council’s infrastructure assets have been consumed compared to what it would cost to build a new asset with the same benefit to the community.

The result of 65.8% indicates that Council’s assets are being consumed in line with their estimated useful lives.

ASSET RENEWAL FUNDING RATIO

The asset renewal funding ratio measures the ability of Council to fund its projected infrastructure asset renewal/replacements in the future.

A ratio of 93.9% in 2024/25 indicates Council is appropriately funding and delivering on the required capital program.

There are no targets specified for this ratio.

Graph9-Assetsustainabilityratio

2020/212021/222022/232023/242024/25

COUNCIL-CONTROLLED REVENUE

Council- controlled revenue is an indicator of Council’s financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.

The result of 89.4% indicates that Council is able to consistently generate operating revenue from rates, levies and charges.

There are no targets specified for this ratio.

POPULATION GROWTH

Population growth is a key driver of Council’s operating income, service needs and infrastructure requirements into the future.

The result of 1.7% indicates that there is a net migration increase in the Townsville local government area.

There are no targets specified for this ratio.

LEVERAGE RATIO

The leverage ratio is an indicator of Council’s ability to repay its existing debt. It measures the relative size of Council’s debt to its operating performance.

A ratio of 2.6 times in 2024/25 indicates Council has generated sufficient cash to meet its debt obligations.

Council borrowings are assessed and approved through a separate process coordinated jointly by Queensland Treasury Corporation and the Department of Local Government, Water and Volunteers. Multiple factors and metrics are taken into consideration through the borrowings process.

Graph11-Council-controlledrevenue

2020/212021/222022/232023/242024/25

Graph12-Populationgrowth

2020/212021/222022/232023/242024/25

Graph13-Leverageratio

OUR PERFORMANCE

TOWNSVILLE CORPORATE PLAN

OUR VISION

)UR VISION

globally connected community driven by 'estyle and nature

)UR

row Townsville

A globally connected community driven by lifestyle and nature OUR Grow Townsville OUR ROLE

)UR ROLE

(:: POSE

Council’s commitment to excellence in delivery of our everyday services, underpins our success.

Juncil's commitment to excellence delivery of our everyday services, nderpins our success

OUR VALUES

)UR VALUES

From new hires to experienced leaders, our employees are the essence and core of Townsville City Council. Our team culture and identity is based on our internal core values, SERVE.





om new hires to experienced aders, our employees are the :sence and core of Townsville City )uncil. Our team culture and entity is based on our internal core 1lues, SERVE.

Safety - Everyone goes home safe today and every day.

Excellence - We exceed expectations and get it right every time



Respect - We respect all people, their cultures and our environment - always.

 for tomorrow.



Value - Today we create value for tomorrow.

Enjoyment - We work together to innovate, create and have fun.

OUR CORPORATE GOALS OVERVIEW

FOR 2024/25

GOAL1

Acitythatconnectsyoutowhatyouneedat thetimeyouchoose.

AsTownsvillegrows,theabilitytoparticipatein activitiesoraccessserviceshasprogressedpastthe traditional9amto5pmhours.Townsvillewill continueitsjourneytobeingaSmartCity,which focusesonenhancingtechnologythatmakeslife easier,providesaccesstoinformationeasierandis moreintuitivetopeople’sneeds.

1.1AphysicallyanddigitallyconnectedSmartCity

1.2Acitythatfacilitates24-houraccesstoservices

1.3Avibrantcitycentredaroundinclusiveconnected neighbourhoods

Achievements&Challenges

Replaced4,200watermeterswithsmartwater meters.

Launchedanewmobilelibraryvantoprovide accesstolibraryservicesacrossthecity.In additiontolendingbooks,themobilelibrary offersprogramsandactivitiessuchasbook clubs,Storytimesessionsanddigital technologyclasses.

LaunchedTownsvilleCityLibraries’newapp makingiteasiertoexplorethelibrary anywhereandanytime.Thisappallowslibrary memberstousetheirphonetotapand borrowbooks,reservebooks,managetheir family’saccount,accesstheirdigitallibrary cardandmore.

Replacedmorethan300metresofscenic footpathalongCapePallarendaRoadbetween PallarendaandRowesBay.

CouncilsecuredanAustralian-firstpartnership withARIO,introducing200futuristic,threewheeledelectricscootersacrossTownsville andMagneticIsland.

IntroductionoftwonewCoastSnapstandsat NellyBayandGeoffreyBaytogivevisitorsa chancetosnapaphotoofthecoastlineto monitorchangestothebeaches.Thiswill enableCouncilandlocalorganisationslike Envitetocollectdataonthewaysinwhichour coastlinesarechangingovertime.

GOAL2

Acirculareconomythatadvancesbusiness andmovestowardszerowaste.

Thecirculareconomymodelreusesandrecycles wastebackintoothervaluableproductsasopposed tolandfill.Alsoparamounttothetransitionofa circulareconomyissupportinglocalbusinesses throughCouncilprocurement.

2.1Zerolandfillby2030

2.2AcarbonneutralCouncilby2040

2.3Procurementthatencouragesbusinessinnovationand circulareconomyprinciples

Achievements&Challenges

Increasedourrenewableenergylightfleet vehiclesto31–anincreaseof10fromthe previousfinancialyear.

CouncilpartneredwithUPPAREL,an Australianleaderintextilerecoveryand recycling,toturnolduniformitemsintoa materialcalledUPtexwhichisusedforthings likehomewares,signageandacoustic panelling.

LaunchedanewtrialfortheContainersfor Changeprogram.With50designated collectionpointsatTheStrandandJezzine Barracks,thisinitiativeallowsforresidentsto collecteligiblebeveragecontainersandtake themtoContainersforChangefora10-cent refund.

Forthethirdyear,Councilinitiatedthe50per centrebate(uptoamaximumof$300)on eligiblepurchasesofreusablenappies, incontinenceandperiodproductstohelp reducewastetolandfill.

Townsvillewasrecognisedontheworldmap foritsforward-thinkingpracticesinlocal government,withCouncil’slow-cost environmentalsensorslandingaspotonthe GreenDestinations’Top100Stories2024.

GOAL 3

The hub for modern industry.

Attracting industries of the future and world class research and education opportunities will drive population growth and retain our valuable residents. To be competitive, Townsville must have sites ready to de-risk investment, providing positive economic impact to local industries, both directly and indirectly.

3.1 Enabling development ready sites that attract industry, de-risks investment and value adds to supply chains

3.2 Supporting the establishment of renewable energy sources to facilitate green industry

3.3 Lead economic transition that supports future industries and business establishment in Townsville

Achievements & Challenges

 Townsville’s Gross Regional Product (GRP) grew by 2% from 2023 to 2024 (calendar year).

 The rejuvenation of the historic North Rail Yards site has commenced and is ongoing, which includes remediation of the site and stabilisation of the heritage buildings.

 The Lansdown Eco-Industrial Precinct continues to gain momentum, with multiple proponents signing Options to Lease and progressing their projects through early feasibility stages toward Development Application lodgement. Council has also commenced construction of enabling road infrastructure, laying the groundwork for future industrial growth.

 Significant increase in development in 2024/25 relative to 2023/24, with highlights being –

o Residential Lots Endorsed (POS): 2023/24 – 448 – 2024/25 – 832

o Residential Lots by Approved Development (RAL): 2023/24 – 392 – 2024/25 - 1328

o Detached Dwelling Approvals: 2023/24 – 575 – 2024/25 – 808

o Total Investment in Residential Development: 2023/24 - $321m – 2024/25 - $479m

o Commercial Building Investment: 2023/24 - $242m – 2024/25 - $288m

 Development and launch of Council’s new Planning and Development website, a onestop shop for builders and developers to find everything they need to know about planning and development in Townsville.

GOAL4

Asustainabledestinationthatembracesand participatesinthearts,sports,eventsand recreationalactivities.

Townsvillehasworldleadingopenspaces,withover 180kmofcoastlineconnectedtotheGreatBarrier Reef,threebotanicalgardens,parksandparklands acrossthecityandnumerousheritageassets.Itis importantthatthecommunitycanaccessthese spaces,whilebalancingprotectionofthe environmentalandheritagefeatures.Toretain residentsofallages,wearefocusedondeveloping ourlocalvisualandperformingarts,growingour successfulsignatureeventsandconnectingpeople withsportingorganisations.

4.1Growingthecitythroughworldleadingplacemaking thatprovidesanationalandinternationalplatform

4.2Growingtheopportunitiestoparticipateinsportand supportsportingexcellence

4.3Developinghomegrownentertainmentandarts culturesupportedbyworld-classvisualand performingartsfacilities

4.4World-classliveabilitythroughexcellentopenspaces whichpromote,protect,andencourageutilisationof ournaturalenvironmentandheritage

Achievements&Challenges

Populationgrowthof1.55%.

RefurbishmentoftheStrandwaterpark includingafreshcoatofpaint,mechanical overhaulandrecertification.

ALIVEsitewasactivatedatRiverwayovertwo weekendsfortheParisOlympicsandaLIVE screenatStrandParkfortheParalympic Games.

CompletedtheJezzineBoardwalkplatform deckingupgradewhichprovidesavisual boostandsafeandcomfortablesurfacefor visitorstouse.

Completionofthenewpipelinespanning almost10-kilometresfromRossRiverDamto Council’sDouglasWaterTreatmentPlantto providelong-termwatersecurityforthecity.

Held14CitizenshipCeremoniesthroughout theyear.

EcoFiesta2024drewover10,000attendees andcelebratedsustainabilitythroughvibrant communityengagement,aligningwiththe3 forBeesprojectandabutterfly-themed activation.Byshowcasingeco-conscious businesses,localcreatives,andemerging filmmakers,theeventreinforcedTownsville’s visionofbecomingathriving,environmentally awaredestination.

RossRiverDamofficiallyopenedforlandbasedrecreationalfishing.Tosupportthis initiative,Councilconstructednew infrastructure,includingan85-metreconcrete footpathleadingfromthedamwalltothe water’sedgeandaccessstairswere constructed.

AnewpartnershipbetweenCounciland TownsvilleEnterpriseformedtofacilitatethe attractingandmanagingoffuturemajor eventstoTownsvilleEnterprise.

CouncilsubmittedtopprioritiestotheState Government’s100-dayreviewintoOlympic andParalympicGamesinfrastructure,which includedanewarenaandupgradestothree sportingprecincts.

Councilapprovedanewover-50slifestyle resortwithupto294sites,swimmingpool, tenniscourt,clubhouseandwellnesscentrein BohlePlains.

AdoptionofthenewCommunitySafetyand WellbeingPlan2025-2030.Thisplanoutlines thecoordinatedroadmaptotacklekeysafety issuesacrossthelocalgovernmentarea.

On19February2025,Counciladoptedanew five-yearCorporatePlan–Townsville20252029–thatsetsoutfourgoals:

oGoal1–ACityforEveryone

oGoal2–ASustainableandResilientCity

oGoal3–AFuture-readyCity

oGoal4–AWell-managedCity Townsville2025-2029isavailableonCouncil’s websiteandtookeffecton1July2025.

CouncilendorsedtheTownsvilleCity BiosecurityPlan2025-2030whichprovidesa coordinatedapproachtothemanagementof pests,plantsandanimalswithinTownsville.

PercTuckerRegionalGallerylaunchedthe worldpremiereoftheWedgwood:Artistsand Industryexhibition,directfromtheUK’s VictoriaandAlbertMuseum.Theexhibition connectedlocalartistsandbusinessestothe Wedgwoodexperience,offeringaonce-in-alifetimeeventfortouristsandlocalsalike.

EndorsedtheLocalHousingActionPlan20242027.ThisplanidentifiesactionsCouncilcan taketosupportdeliveryofhousing throughoutTownsville.

CarolsbyCandlelight2024welcomed15,000 attendeesforafestivenightoflocal performancesandfamilyfun,reinforcing Townsville’svibrantartsandeventsscene.

NewYear’sEve2024drewover29,000people acrossthreelocations–TheStrand,Riverway andNellyBay,celebratingwithfireworksand entertainmentthatshowcasedTownsville’s dynamicandinclusivecommunityspirit.

GOAL 5

A leading centre of education, training and research commercialisation.

Townsville already stands as an education and research leader, with worldwide recognition for its marine science and management of the Great Barrier Reef, leading tertiary hospital in Northern Australia and ground-breaking research in tropical science with TropiQ. Research commercialisation will create jobs and demonstrate new pathways for school leavers, develop local industry and supply chains, and support Defence initiatives.

5.1 Formalising partnerships with industry, research institutes and all levels of government to support growth, innovation and resilience across the economy

5.2 A world-leading centre of research commercialisation that drives local manufacturing

5.3 A specialist leader in research and simulation

Achievements & Challenges

 Townsville Citylibraries delivered nine Deadly Digital workshops for the First Nations community to preserve and share cultural knowledge for generations to come.

 Successfully led local disaster coordinated response through the January-February significant rainfall event.

 Facilitated the delivery of 20 disaster management modules as part of the Queensland Disaster Management Training Framework (QDMTF).

 Delivered four disaster management exercises for the Townsville Local Disaster Management Group (TLDMG) and Local Disaster Coordination Centre (LDCC).

 Hosted two international delegations from Papua New Guinea and Vanuatu to deliver disaster management training and information.

 Delivered and participated in six disaster management workshops.

 Activated the LDCC on three occasions for operational support to the TLDMG.

 The Animal Care and Adoption Centre provided a training platform for fifth year veterinary students to undertake practical experience and placement. This has been an arrangement that has been occurring for over five years.

LOCAL DISASTER COORDINATION CENTRE

OPERATIONAL PLAN 2024/25

HIGHLIGHTS

4,200 Water meters replaced with smart water meters

I I I I I (90

Introduction of digital sign in and site induction for visitors and contractors at all Council sites

1,340 Digital literacy program participants 32% Decrease in obsolete library items going to landfill (2024/25 target 10%)

100% Compliance with dam safety regulations

10 Passenger vehicles replaced with renewable energy vehicles

18

1,750

Attendees for the Festival of Stories (154 7% increase in attendance from previous 2022 festival) Maintained ECO-certified destination certification (nature tourism) for Townsville Local Government Area (LGA) Sport development and inclusion support programs delivered

100% Compliance with Australian Drinking Water Guidelines (ADWG)

95.6% Of lab services completed within agreed timeframes (2024/25 target 95%)

OUR COUNCIL

COUNCILLORS

Cr Ann-Maree Greaney

Acting Mayor of Townsville*

Division 3

0448378111

Ann.Maree.Greaney @townsville.qld.gov.au

Termofoffice: 3

AsActingMayorofTownsville, CouncillorGreaneyplaysakey roleinadvancinginitiatives thatpromoteresilientand sustainabledevelopment alongwithstrategicfuturefocusedinvestmentthatbuilds ontheliveabilityofthecity.

Priortobecomingacouncillor, sheworkedforover10years withTownsvilleCityCouncilas SpecialEventsandProtocol Officer.

AsaMemberoftheAustralian InstituteofCompanyDirectors andaformerBoardMember oftheCowboysLeaguesClub, shebringsvaluableleadership andgovernanceskillstoher dualrole.

CrGreaneyandherhusband havetwoadultsonsandtheir beloveddog,Humphrey.

Qualifications: Memberof AustralianInstitute ofCompanyDirectors DiplomaofEducation

ExecutiveCertificateinEvent Management

*Refer to note on page 31

Cr Paul Jacob Division 1

0461347577

Paul.Jacob @townsville.qld.gov.au

Termofoffice:2 (non-consecutive)

ATownsvilleresidentformore than30years,CouncillorJacob isservingourcommunityin hissecondterm.

BorninSydney,CrJacob startedoutasanElectronics andCommunications Technician,workinginremote locationsacrossAustralia.This experienceequippedhimwith astrongunderstandingof infrastructureandessential services.

CrJacobhascontributedto ourcitythroughhisworkat TownsvilleHumanCapital, JamesCookUniversity,and TheTownsvilleUniversity Hospital.

CrJacobisdedicatedto supportingaback-to-basics approach,prioritisingessential infrastructurelikeroads, transport,sewerage,and transferstationstobuilda strongfoundationforour city’sfuture.

COUNCILLORS

Cr Brodie Phillips Division 2

0461 442 642

Brodie.Phillips @townsville.qld.gov.au

Term of office: 1

Born and raised in Townsville, Councillor Phillips has a deep connection to the city’s rich heritage and vibrant community.

His passion for serving the community began with active involvement in local social media groups.

With a diverse background in justice, retail, finance and banking, he brings a breadth of experience to his role.

Since moving to Division 2 in 2018, Cr Phillips has embraced life in the area with his two sons and has become a passionate advocate for progressing key local interests.

Cr Phillips envisions Townsville as a city where residents can live, work, and play, no matter their interests, to foster a thriving, inclusive community for all.

Qualifications:

Diploma of Justice Studies

Cr Kristian Price Division 4

0461 481 414

Kristian.Price @townsville.qld.gov.au

Term of office: 1

Councillor Price has proudly called Townsville home since he was 10 years old, and his deep-rooted connection to the community continues to shape his values and vision for the city.

Starting his career in civil work and construction, he discovered a passion for hands-on work, later moving into mining, where he rose from entry-level “nipper” to a certified supervisor.

Embracing a new challenge, Cr Price turned his attention to hospitality, opening a successful pizza restaurant.

This experience deepened Cr Price’s appreciation for the tenacity and spirit of Townsville’s residents and equipped him with valuable insights into local business needs.

Cr Vera Dirou Division 5

0461 418 618

Vera.Dirou @townsville.qld.gov.au

Term of office: 1

Born and raised in Townsville, Councillor Dirou has always called this city home, even during years of travel with her husband’s military service.

Since returning in 2008, she developed a deep appreciation for local government’s role in shaping our community’s day to day life.

With a career spanning two decades in the Department of Defence, specialising in logistics, compliance, auditing, and administration, Cr Dirou brings a broad range of skills and experience to her role as Councillor.

She is a passionate advocate for transparent, accountable leadership in all levels of government.

With her dedication and vision, she strives to make Townsville an even better place to live, work, and thrive.

Qualifications:

Diploma of Quality Auditing

COUNCILLORS

Cr Suzy Batkovic Division 6

0434 939 419

Suzy.Batkovic @townsville.qld.gov.au

Term of office: 2

Prior to being elected, Councillor Batkovic was a professional athlete, playing basketball for 23 years across the USA, Europe and Australia. During this time, she represented Australia at three Olympic Games (2004, 2008 and 2012), winning two silver medals and a bronze, and also competed at two FIBA World Cups.

In 2024, Councillor Batkovic was inducted into the Australian Basketball Hall of Fame.

Her experience in professional sport taught her the value of teamwork, leadership, compassion and the importance of listening. It also showed her how to stand up for what is right and most importantly, what it takes to work together to achieve positive outcomes.

Cr Batkovic, a proud mother of twin daughters, has lived in Division 6 for over 10 years.

Cr Kurt Rehbein Division 7

0439 847 860

Kurt.Rehbein @townsville.qld.gov.au

Term of office: 3

Now in his third term, Councillor Rehbein holds a genuine passion for serving community.

Born in Townsville and raised in Ayr, where his family owned a local convenience store, he learned early on about the value of community connection and the important role of small businesses.

Throughout a diverse career as a cabinetmaker, RAAF military dog handler, and firefighter, he gained valuable experiences and developed a strong sense of discipline and problem-solving skills.

When not spending time with his wife and four young children, he enjoys pursuing various hobbies, from casting a line to furniture restoration.

Qualifications: Trade Certificate in Cabinetmaking

Certificate III in Dog Handling and Military Operations

Diploma in Fire and Rescue Operations and Public Safety

Cr Andrew Robinson Division 8

0461 518 080

Andrew.Robinson @townsville.qld.gov.au

Term of office: 1

Councillor Robinson served 13 years as an officer in the Royal Australian Army Medical Corps, instilling a lifelong commitment to service. On being medically discharged, he earned his accounting qualifications at James Cook University before working in logistics and accounting roles.

Prior to becoming a councillor, he held a senior finance role in the Department of Transport and Main Roads. He has served on several boards, including a bank. Currently, he chairs one local investment company and is a graduate of the Australian Institute of Company Directors.

Cr Robinson enjoys chess, board games, military history, driving his Holden FJ Ute and spending time with his wife and three daughters.

Qualifications:

Bachelor of Commerce

(Accounting)

CPA

Graduate of the Australian Institute of Company Directors

Justice of the Peace (Qualified)

COUNCILLORS

Cr Liam Mooney Division 9

0434925510

Liam.Mooney @townsville.qld.gov.au

Termofoffice: 2

AproudTownsvillelocal, CouncillorMooneyhaslivedin andaroundDivision9his entirelife.Watchinghisown childrengrowuphere–attendingschool,playing sports,andperforming,just as hedid–hasstrengthenedhis senseofprideand commitmentforthecity.

Drivenbyapassionfor performanceandsport,hehas representedTownsvilleand NorthQueenslandinmusic, theatre,soccer,and swimming.Alongsidehiswife, hesharesadeeppassionfor thearts, withextensive volunteerexperiencein communitytheatre, instrumentalmusic,andthe performingandvisualarts.

Withaprofessional backgroundinthePerforming ArtsandEventsindustry,Cr Mooneymaintainsstrong communitytiesthroughboth hispersonalandprofessional life.

Cr Brady Ellis Division 10

0499577788

Brady.Ellis @townsville.qld.gov.au

Termofoffice: 1

CouncillorEllisfirstfellinlove withTownsvillein2017, relocatinghereforhiscareer inbreakfastradio.

Afterasuccessfuldecadein theindustry,culminatingina prestigiousAustralian CommercialRadioAwardfor bestEntertainment/Music Announcer(2017),heretired fromradiotopursuenew ventureswithhiswife.

Bradyisanactivememberof theTownsvillebusiness community,owningand operatingtwosuccessfulKX Pilatesstudios.

Nowraisingafamilyin Division10,hehasdedicated himself toinvestinginwhathe proudlycalls“thebestcityin northernAustralia”.

Withavisionforathriving, active,andhealthyTownsville, heispassionateaboutplaying hispartinseeingTownsville transformintotheroaringhub ofthefuture.

DISCLOSURE OF GOVERNANCE

PERFORMANCE

Councilinvestigatesreportedorsuspectedinstancesoffraudandotherseriouscrime andmisconductand maintainsafocusonraising awarenessofCouncilvaluesandfosteringethicalbehaviour.Counciltreatsall allegationsoffraud,corruptionandseriousmisconductwiththeutmostimportanceandensurestheyare thoroughlyinvestigated.

TheOfficeoftheIndependentAssessor(OIA)investigatescomplaintsregardingtheconductandperformanceof Councillors.Duringthe2024/25financialyearthetotalnumberofcomplaintsreferredtotheOfficeofthe IndependentAssessor(OIA)undersection150P(2)(a) ofthe Local Government Act 2009 was5andthetotalnumber ofnoticesgivenundersection150R(2)oftheActwas68.

Councilcontinuesitscommitmenttoencourageandsupportpublicinterestdisclosuresofwrongdoing.Allpublic interestdisclosuresmadethisfinancialyearwereinvestigatedinaconfidentialmannerandinaccordancewith PublicInterestDisclosureStandardNo.2/2019.AlldisclosureswerereportedtotheQueenslandOmbudsman OfficeandtherelevantdocumentationrecordedinaccordancewithPublicInterestDisclosureStandardNo. 3/2019.

TheTownsvillecommunityreliesonCounciltodotherightthing,andCouncilvaluesitsreputationfordelivering servicesinanethicalandaccountablemanner.Councilsectionscontinuedtoworkcloselywithoneanotherto ensureacollaborativeandproactiveapproachtodrivingCouncil’sethicalstandards.TheannualCodeofConduct trainingwascompletedby100%ofstaff,andallnewstaffcompleteFraudAwareness andCodeofConduct trainingduringtheirinductionperiod.

OPENNESS AND TRANSPARENCY

Asanopenandtransparentlocalgovernment,Councilmakesinformationavailableforcommunitymembersina rangeofformatsusingTownsvilleDashboards.TownsvilleDashboardsisadigitalplatformtoaccesshighquality, currentdata,andinsightsaboutTownsville,informingandenablingtheTownsvillecommunityandthosewithan interestininvestingintheregion.

Tocomplywiththe Local Government Act 2009 andintheinterestofopennessandtransparency,allCouncillorsare requiredtodiscloseandprovideupdatesfortheirRegisterofInterestswhichcanbe viewedontheCouncil’s publicwebsite.

Councillorsareultimatelyresponsiblefordisclosingany prescribedconflictofinterestoranydeclarableconflictof interestonmatterstobediscussedataCouncilmeeting(otherthanordinarybusinessmatters).Prescribed ConflictofInterestandDeclarableConflictsofInterestdeclaredarerecordedintheminutesofthosemeetings. OrdinaryandspecialmeetingsofCouncilareopentothe publicunlessclosedinaccordancewithsection254Jof theLocalGovernmentRegulation2012.Oncethedeliberationsareconcludedinclosedsessions,themeetingis re-openedtothepublicfora decisionandthedecisionisplacedonthepublicrecord.

OrdinaryCouncilandSpecial Councilmeetingsarelivestreamed.Copiesoftherecordingsareavailableonthe Council’swebsite.

TheAuditandRiskCommitteeandtheInternalAuditUnit continuedtoprovideadvisoryandindependentforums whererepresentativesofCouncil,independentspecialistsandmanagementworkedtogethertofulfillspecific governanceresponsibilities.

MEETING ATTENDANCE

Council meetings comprise of Ordinary Council meetings and Special Council meetings. Ordinary Council meetings have a membership comprising of the Mayor and all Councillors.

The attendance of Councillors at Ordinary Council meetings and Special Council meetings for the relevant periods are outlined in Table 2.

Table 2 – Councillor meeting attendance 2024/25

*Pursuant to subsection 253(1) of the Local Government Regulation 2012, Councillor Troy Thompson was suspended from office as the Mayor of the Townsville City Council for the period of one year starting on 22 November 2024. Subsection 253(1) gives effect to a recommendation made in writing by the Queensland Minister for Local Government, on 21 November 2024 under section 122(2)(b) of the Local Government Act 2009, that the Governor in Council suspend the Councillor for the period mentioned in the subsection.

On the suspension of Councillor Troy Thompson from office as the Mayor of the Townsville City Council, the Deputy Mayor commenced acting for the Mayor pursuant to subsection 165(1) of the Act. The Deputy Mayor at that time was Councillor Paul Jacob.

At a Special Meeting of Council on 17 December 2024, Council resolved that the office of Deputy Mayor be declared vacant. Council subsequently resolved that Councillor Ann-Maree Greaney be appointed to the office of Deputy Mayor. As a result of this appointment, Councillor Ann-Maree Greaney became Acting Mayor.

GOVERNANCE OF OUR COUNCILLORS

REMUNERATION, EXPENSES AND FACILITIES

Councillors receive a remuneration package determined by the Local Government Remuneration Commission, which is reviewed on an annual basis.

The Commission increased the maximum remuneration levels for mayors, deputy mayors and councillors by 3.0% from 1 July 2024.

REMUNERATION

Table 3 outlines the remuneration received by Councillors in 2024/25, remuneration is inclusive of transport allowance.

Table 3 – Councillor remuneration 2024/25

Variances in superannuation due to options available for Councillors to make additional contributions throughout the year. *Refer to note on page 31 EXPENSES

Table 4 - Councillor expenses 2024/25

*Refer to note on page 31

FACILITIES

Councillors were provided with the following facilities to enable them to perform their duties and undertake Council business:

 personal protective equipment (PPE)

 stationery supplies

 full administrative support (Mayor and Deputy Mayor)

 limited administrative support (Councillors)

 telecommunications facilities

 shared office facilities (Councillors)

 home office facilities (Councillors)

MAYOR’S COMMUNITY ASSISTANCE GRANTS

At the Special Council Meeting of 26 June 2024 Council adopted the 2024/25 Budget and Operational Plan. No budget was allocated to the Mayor’s Community Assistance Grants for 2024/25.

COUNCILLOR DISCRECTIONARY FUNDS

In accordance with section 189 (2) of the Local Government Regulation 2012, the annual report must contain information about Councillor discretionary funds.

At the Special Council Meeting of 26 June 2024 Council adopted the 2024/25 Budget and Operational Plan. No budget was allocated to Councillor Discretionary Funds for 2024/25. Councillor discretionary funding for 2024/25 was as follows:

 the prescribed amount for the financial year was $199,650

 the total amount budgeted was $0

 the total amount of discretionary funds budgeted for Councillors to allocate for capital works for a community purpose was $0, and other community purposes was $0

 the amount of discretionary funds budgeted for use by each Councillor was $0

 the total spent for the financial year was $0.

CONDUCT AND PERFORMANCE

Under section 186(1)(d)-(k) of the Local Government Regulation 2012, Council’s Annual Report must contain details of any decisions, orders, recommendations, and complaints about Councillors during the financial year. Details for 2024/25 are outlined in Table 5.

Table 5 – Number of Councillor Conduct complaints, notices, referrals, orders and disciplinary actions

orders and recommendations made under section 150AR(1) of the Local Government Act

The name of each Councillor for whom a decision, order or recommendation was made under section 150I(2), section 150IA(2)(b), section 150AH or section 150AR(1) of the Local Government Act 2009,

 a description of the unsuitable meeting conduct, conduct breach or misconduct engaged in by each Councillor, and  a summary of the decision, order or recommendation made for each Councillor.

referred to the assessor under section 150P(2)(a) of the Local Government Act 2009 by local government entities for the local government.

mentioned in section 150P(3) of the Local Government Act 2009, notified to the Crime and Corruption Commission.

given under section 150S(2)(a) of the Local Government Act

Occasions the local government asked another entity to investigate, under chapter 5A, part 3, division 5 of the Local Government Act 2009 for the local government, the suspected conduct breach of a Councillor.

Applications heard by the conduct tribunal under Chapter 5A part 3 division 6 of the Local Government Act 2009 about whether a councillor engaged in misconduct or a conduct breach.

The total number of referral notices given to the local government under section 150AC(1) of the Local Government Act 2009 during the financial year and for those suspected breaches the subject of a referral notice mentioned;

 the total number of suspected conduct breaches for which an investigation was not started or was discontinued under section 150AEA of the Local Government Act 2009.

The number of decisions made by the local government under section 150AG (1) of the Local Government Act 2009 during the financial year.

The number of matters not decided by the end of the financial year under section 150AG (1) of the Local Government Act 2009.

The average time taken by the local government in making a decision under section 150AG (1) of the Local Government Act 2009

OUR PEOPLE

OUR WORKPLACE HEALTH, SAFETY AND WELLBEING

Councilhasmadesignificant stridesinimprovingWorkHealthandSafety(WHS) performance,withastrong emphasisoncreatingasafer,healthier,andmoresupportiveworkplace.Thisprogressisreflectedinenhanced reportingpractices,proactiveriskmanagement,enhancedhealthmonitoringprogramandincreased engagementacrossteams. WHSisnotjustacompliance requirement—it’sacorevaluethatunderpinsCouncil’s commitmenttothewellbeingofitspeopleandthecommunitiesitserves.

Akeyfocushasbeenonpsychosocialsafety,recognising thatmentalhealthandwellbeingarejustascriticalas physicalsafety.Councilhasundertakenextensivereviewsandassessmentstoidentifypsychosocialrisk.These reviewshaveinvolvedcollaborationacrossteams,consultationwithworkers,andtheuseofevidence-based frameworkstoensureathoroughunderstandingofthechallengesandopportunitiesforimprovement.

ThedepthandbreadthofworkinthisspacehighlightCouncil’sdedicationtofosteringapsychologicallysafe workplace.Initiativessuchasleadershiptraining,wellbeingprogramsandtargetedinterventionsarebeing implementedtoaddressidentifiedrisksandbuildacultureofcareandinclusion.This ongoingcommitmentto psychosocialsafetynotonly supportsindividualwellbeingbutalsostrengthensteamcohesion,performanceand overallorganisationalhealth.

TheHealth,SafetyandWellbeingStrategy2025–2029identifiesfourstrategicprioritiesthatwillsupportthe continuousimprovementofallaspectsofhealthandsafetyandsupportthedeliveryof theOperationalPlan.

LONG SERVICE AWARDS

InalignmentwithCouncil’sstrategicimperativestobuildapositiveworkplaceculturethatalignswithourSERVE organisationalvalues,weactivelyrecogniseandvalueouremployeesthroughbothinformalandformalreward andrecognitioninitiatives.

Council’sformalrewardandrecognitioninitiativesincludetheannualLongServiceAwardsCeremony,wherestaff whohaveachieved10years ofserviceormoreinfive-yearincrementsarerecognised fortheircommitmentand servicetoCouncilandthecommunity.

AttendeesincludetheMayor,Councillors,CEO,Directorsandtheseniorleadershipteam,alongwithinvited colleaguesandspecialguests. Toshowourappreciationandrecognition,staffreceiveaframedservice certificate,acommemorativepinandgift.

For2024,Councilcongratulated130staffwithatotalof2,245combinedyearsofservice,rangingfrom10years rightthroughto45years.Theawardsareagreatopportunityforemployeestoberecognisedfortheir contributions,bigandsmall,overtheiryearsofservice.

OUR STATUTORY INFORMATION

GOVERNANCE FRAMEWORK OVERVIEW

TownsvilleCityCouncilcontinuestobearesponsible,open,andtransparentlocalgovernmentoperatingin accordancewiththeQueensland Local Government Act 2009,theLocalGovernmentRegulation2012andrelated legislation.Counciliscommittedtohighstandardsofcorporategovernanceandaccountabilityandseeks continuousimprovement.

Inlinewiththe Local Government Act 2009,theCouncilplaceshighimportanceonresponsiblegovernancedueto thefollowingreasons:

 itunderpinstheconfidencethatthecommunityhasinCouncilandourservices

 itaffectsthequalityofouroutputs

 itisavalueaddingactivity

 itensuresthattheCouncilmeetsitslegislativeresponsibilitiesand

 itisastrongreminderthattheCouncilisultimatelyaccountabletothecommunity CouncilhasaCorporateGovernanceFrameworktoprovideguidelinesforcompliance withlegislationandbest practice.ForCounciltodemonstrategoodgovernance,thereneedstobeaclearunderstandingabout responsibilitiesandaccountabilities.Thisframeworksets outtherolesofelectedmembersandadministrationin representingtheinterestsof currentandfutureresidents ofTownsville.Townsville’selectedofficialsbringa diversewealthofexperience andpassion,andthroughouttheyearhavecontinuedtointeractwiththe communityandactonresidents’behalf.

ENTERPRISE RISK MANAGEMENT

Council’srisk managementapproachisbasedonvaluecreationandprotectioninalignmentwithinternational standardISO31000:2018RiskManagementGuidelines.Throughout2024/25Councilcontinuedtoassessriskfor anydecisionproposals,keepinganynewandemergingrisksunderconsideration.Managingrisksatan appropriatelevelremainsanintegralpartofourorganisation.Councilhasanestablishedriskmanagement framework,policy,proceduresandsystemswhichsupporttheidentification,assessmentandmitigationof strategicandoperationalrisksacrosstheorganisation.

AstheprimaryconnectiontotheTownsvillecommunity,Councilhascontinuedtoprioritiseriskmanagement, ensuringitreceivestheattentionnecessarytosafeguard ourcommunity’sinterestsandwell-being.Thesafetyof staff,thecommunityandcontractorsremainedthekeypriorityatCouncil.ItisimportantforCouncilthat “everyonegoeshomesafetodayandeveryday”.Riskmanagementcontinuestobearesponsibilityofall employeesandanintegralpartofthemanagementfunction.

STRATEGIC RISK ASSESSMENT

SeniormanagementconductedanextensivereviewofCouncil’sstrategicriskprofileduringtheyearthrougha seriesofworkshops.Basedontheupdatedstrategicrisk profile,changesweremadetoCouncil’sRiskAppetite Statementandrelatedrisk tolerances.The2024/25RiskManagementPlanincludesarangeofmitigation strategiesdesignedtomanageorreducerisktoanacceptablelevel,whilemaximising identifiedopportunities. Minimisingpotentialadverse effectsonthefinancialperformanceoftheCouncilremainedapriority.Townsville CityCouncilcontinuedtomitigaterisksthatwouldpreventtheachievementofitsCorporatePlanandcontinued tofocusoncreatingagloballyconnectedcommunitydrivenbylifestyleandnature.

Topchallenges/risksfacedbyCouncil:

 costpressuresofmaterialsandservicesversusrevenuestreamsandcustomerexpectations

 assetdeteriorationandmaintenance

 specialskillsdeficits

Topopportunities/strengthsrealisedbyCouncil:

 continuedprovisionofservicesandcommunityeventsdespitehardeconomicconditions

 continueddeliveryofprojectsthatserveourcityandgrowourcityfortomorrow

 builtstrongpartnershipsandresilience

OPERATIONAL RISK ASSESSMENT

Councilconductsroutineoperationalriskassessmentsasaproactivemeasuretoidentifypotentialrisksthat coulddisruptitsoperations.Theseriskscouldoriginatefromvarioussources,includinginternalprocesses, people,systems, orexternalevents.

Allidentifiedrisksarecompiledintoaconsolidatedregisterofrisks,whichinformsthe internalauditplanning process.ThisprocessassiststheAuditandRiskCommitteeinmonitoringandtracking Council’sperformance againstareasofhighrisk,supportingeffectiveriskmanagementandmaintainingresilience.

BUSINESS CONTINUITY MANAGEMENT

CouncilhasanestablishedBusinessContinuityFrameworkandBusinessContinuityManagementPolicyin alignmentwithinternationalstandardISO22301:2019BusinessContinuityManagementSystems.These documentsaredesignedtoensuretheCouncil’sabilitytocontinueitsessentialservicesandoperationsduring anypotentialdisruptionsorcrises.Thisframeworkandpolicyprovideastructuredapproachtoidentifypotential threatstotheCouncilandtheimpactsthosethreatswouldhaveonbusinessoperations.

ThesedocumentsaresupportedbytheoverarchingTownsvilleCityCouncilBusiness ContinuityPlanandits22 subplans.TheseplansprovidestrategiesforsafeguardingandrecoveringCouncil’soperationalandservice deliverycapabilityduringsevereunexpectedevents.

Inthe2024/25period,Councilconductedacomprehensivereviewoftheframework,policyandsuiteofbusiness continuityplans.Thereview andupdateoftheseplansarepartoftheCouncil’sannualstrategicprocess, ensuringtheyremaincurrent,operationallyrelevantand effective.ThisreflectstheCouncil’scommitmentto resilience,continuousimprovement,andcommunityresponsibility.

COMPLIANCE RISK

Throughout2024/25,theCouncilremainedconsistentinitscommitmenttoidentifyingandmitigatingtheriskof non-compliancewithlegislativeobligations.Ourproactiveapproachencompassesthetimelyidentificationof legislativechanges,swiftresolutionofpotentialbreaches,andtheprovisionoftrainingandawarenessprograms forCouncilworkers.TheseinitiativesaimtoenhanceunderstandingofCouncil’sextensiverangeoflegislative responsibilities.Furthermore,Councilconductsthoroughassessmentsoftheeffectivenessofourinternal controlstomitigatetheriskofnon-compliance.ThisincludesatimelyandcomprehensivereviewoftheCouncil’s corporateguidancedocuments(e.g.policies,administrativedirectives,procedures)andregisters.

FRAUD RISK ASSESSMENT

Council’sapproachtofraudandcorruptionmanagement iscomprehensive,involvingregularriskassessments, stafftraining,andcontinuousimprovementofourpoliciesandprocedures.Throughouttheyear,weconducted fraudriskassessmentsasakeypartofourFraudandCorruptionManagementPolicy andFramework.These assessmentshaveprovencrucialinseveralinstances,effectivelyidentifyingandmitigatingpotentialfraudulent activities,therebyprotecting theCouncil’sresources.

Wearepleasedtoreportthat99%ofourstaffandseniormanagementhavecompletedtheFraudandCorruption Awarenessrefreshertraining.Thishighcompletionrateisatestamenttoourteam’s commitmentto understandingandmitigatingfraudrisks.Thetraining,deliveredviaourlearningplatform,isdesignedtoequip ourteamwiththenecessaryknowledgetoidentifypotentialfraudrisksandrespondappropriately.

POLICY MANAGEMENT

Council’sapproachtopolicymanagementisfocusedonensuringourcorporateguidancedocuments, predominantlyCouncilpolicies,areuptodate,fitforpurpose,andaddvalue.Wehaveestablishedarobust governanceprocessinrespecttopolicymanagement,whichincludes:

 engagementwithkeystakeholders

 adetailedassessmenttoevaluateitseffectiveness,compliancewithlegislativeobligationsandvalue additionand

 astandardiseddevelopment andreviewprocessinalignmentwithCouncil’sestablishedriskappetiteand humanrightsconsiderations.

Throughouttheyear,Councilhasupdatedseveralkeypoliciesandintroducednewonesincollaborationwith Councillors.Councilvaluestheinputofourstakeholdersinourpolicymanagementprocess.Wehave mechanismsinplaceforinternalandexternalstakeholderstoprovidefeedbackonourpolicies,contributingto theirenhancementandfosteringacultureofcontinuouslearningandimprovement.

COMMUNITY ASSISTANCE

ThetotalvalueofcommunityassistanceprovidedbyTownsvilleCityCounciltothelocalcommunityin2024/25 was$22,043,605.

6 – Community assistance provided by Council

Waterandwastewater concessions

Not-for-profitconcessions ongeneralrates

Concessionofferedtoapprovedpensionersequivalentto 85%ofthe generalrate,uptoamaximumof$800perannum.

6,295,631

Concessionforutilitychargeswherelanduseisconsideredto contributetothesocial,cultural,economicorsportingwelfareof thecommunity. 3,532,439

Concessionforgeneralrateswherelanduseisconsideredto contributetothesocial,cultural,economicorsportingwelfareof thecommunity. 2,051,208

Concessionforwaterservice chargesincurredinrespectofkidney diseasepatientswhowereundergoinghomehaemodialysis treatment. 625

Totalannualestimatedvalue providedtocommunitygroups includingsportingclubs,theatregroups,scoutgroupsand swimmingpools. 5,239,373 EconomicActivation Partnerships

Partnershipsprovidingopportunityto:

 delivereconomicuplifttotheregion

deliverincreasedtourismvisitationandbednights

deliverjobopportunitiesforTownsville

Thesemayfacilitateeventattraction,strategicpartnershipswith localorganisationsthatenhancetheregionanditsopportunitiesor othermulti-partneragreementswithregionwideimpact. 2,949,895 TownsvilleCityGrantsand PartnershipsProgram, includingFeeWaivers

Fundingapprovedthroughthe‘TownsvilleCityGrantsand PartnershipsProgram’(detailsprovidedinTable7). 1,697,663

Freeserviceprovidedtocommunityorganisationsthough CityLibrariesThuringowa. 21,956copiesfor21communitygroups. 2,196

Total $22,043,605

TOWNSVILLE CITY GRANTS AND PARTNERSHIPS PROGRAM

TownsvilleCityCouncil’sGrantsandPartnershipsprovidesfundingandin-kindsupporttohelplocalnot-for-profit communityorganisationsinTownsville.Councilrecognisesthetremendousworkand contributionthat communityandnot-for-profitorganisationsmakeinour community.TheGrantsandPartnershipsProgramhelps tocontinueandenhancethe impactcommunityorganisationsandactivitiesarealreadyhavinginthelocal Townsvillearea.ThetotalvalueoftheTownsvilleCityGrantsandPartnershipsProgramin2024/25was $1,697,663. Table 7 – Townsville City Grants and Partnerships Program

PARTICULAR FINANCIAL CONTRIBUTIONS UNDER PLANNING ACT

Inaccordancewithsection189AoftheLocalGovernment Regulation2012,theannualreportmustcontain informationaboutthetotalamountoffinancialcontributionsmadetothelocalgovernmentinthefinancialyear. TownsvilleCityCounciladvisesthatnofinancialcontributionsweremadeduringthe2024/25financialyearunder:

 Acommunitybenefitagreementunderthe Planning Act;

 Aconditionofdevelopmentapprovalimposedundersection65AA(3);

 AconditionofadevelopmentapprovalimposedunderadirectionoftheChiefPlanning&Development Officerundersection106ZF(2);or

 Anagreementmentionedinsection65AA(7) ofthe Planning Act. Asaresult,nocontributionwerespent,andthereareno associatedpurposestoreportforthisperiod.

CITY ACTIVATION AND HOUSING

INCENTIVE POLICY

TheCityActivationandHousingIncentivePolicywasendorsedforthe2024/25financialyeartopromote economicgrowthandcityactivationbygeneratinginvestment,increasinghousingdiversity,communityactivities andemploymentopportunities.

Fortransparency,recognisinginfrastructurechargeandfeewaivers(fullorpartial) areaformofforgone revenue,Councilwillpublishannuallyalistofinfrastructurechargesandfeewaiversprovidedunderthispolicyin theAnnualReport.

Summaryofincentivesforthe2024/25financialyear:

 Revenueforgonefromwaiversto30June2025was$863,067

 Grantsgivento30June2024was$50,000

Grantshavebeenfullyacquittedforthe2024/25financial year.

Waivershavebeenpartially acquittedforthe2024/25financialyear.

OVERSEAS TRAVEL

Undersection188oftheLocalGovernmentRegulation2012,Council’sAnnualReport mustcontaininformation aboutanyoverseastravelmadebyaCouncillororlocalgovernmentemployee.

TherehavebeennointernationaltravelexpensesincurredbytheCouncillorsoremployeesduringthefinancial year.

SENIOR MANAGEMENT REMUNERATION

Theseniormanagementofalocalgovernmentconsistsof theChiefExecutiveOfficerandseniorexecutive employeesofthelocalgovernment.AseniorexecutiveemployeereportsdirectlytotheChiefExecutiveOfficer andwouldordinarilybeconsideredaseniorpositioninthecorporatestructure.

Totalremunerationforthese positionsfrom1July2024to30June2025was$2,319,159.22*.

*Inclusive of severance and termination entitlements.

Aspersection201ofthe Local Government Act 2009,Table8providestheremunerationrangesforthesenior executives.

Table 8 – Senior management remuneration

*During the financial year Council resolved to adopt a new Organisational Structure which reduced the number of senior executive management positions from five to four.

COUNCILLOR ADVISOR REMUNERATION

InaccordancewithDivision3,Section201ofthe Local Government Act 2009,Councilisrequiredtoincludeinits AnnualReportdetailsregardingthenumberofCouncillor Advisorsappointedandthetotalremunerationpayable tothemduringthefinancialyear.

Forthereportingperiodof1 July2024to30June2025,no CouncillorAdvisorswereappointed,andthereforeno remunerationwaspayableunderthisprovision.

PARTICULAR RESOLUTIONS

ReportableresolutionsundertheLocalGovernmentRegulation2012fortheperiod:

Table 9 – Particular resolutions

PUBLIC SECTOR ETHICS

InaccordancewithSection23ofthe Public Sector Ethics Act 1994,TownsvilleCityCouncilrequiretoprovidean implementationstatementoutliningtheactionstakenduringthereportingperiodtocomplywithSection15 (Preparationofcodesofconduct),Section21(Educationandtraining) andSection22(Proceduresandpracticesof publicsectorentities).

PREPARATION OF CODE OF CONDUCT

TownsvilleCityCounciliscommittedtoprovidingaworkingenvironmentwherepeoplearetreatedwithfairness, equityandrespect.Council’s commitmenttofacilitatingadiverseandequalworkforce isdemonstratedthrough commitmenttotheDiversity,EquityandInclusionintheWorkplacePolicy,alignmenttoQueensland’s AntiDiscrimination Act 1991 andobligationsunderrelevantfederalanti-discriminationlaws.

CouncilhasestablishedaCodeofConduct,whichdetails thestandardsofbehaviourandexpectationsforCouncil workerswhendealingwithcustomersandotherworkers.CouncilprovidesCodeofConducttrainingannuallyto allstaff,whichincorporatestheethicsprinciplesandobligationsunderthe Public Sector Ethics Act 1994 andthe fiveLocalGovernmentPrinciplesundersection4(2)of Local Government Act 2009.CodeofConducttrainingisan essentialcomponentofCouncil’sCorporateCompliance trainingprogram.

EDUCATION AND TRAINING

AtTownsvilleCityCouncil,LearningandDevelopmentisevolvingintoastrategicenablerofworkforcecapability, agilityandresilience.Weare reshapingourapproachtofosteralearningculturewithastrongemphasison digitaldexterity,data-drivendecision-makingandleadershipcapabilityatalllevels. Weaimtobuildaworkforce thatisfuture-ready,adaptable,andempoweredtoleadchange.Byaligninglearningwithstrategicworkforce planningandproactivelyidentifyingcriticalskillsgaps, wewillmitigatecapabilityrisks,enhanceemployee attraction,mobility,andretention,andsupportthedeliveryofCouncil’sstrategicobjectives;ensuringourpeople arecompetent,valued,andequippedtothriveinadiverseandrapidlychangingenvironment.

2025sawthebeginningofourInductionReviewProject, strengtheningtheinductionexperiencebydelivering criticalknowledgeandfoundationalskillsusingthemosteffectiveplatform.Byreducingdelaysinaccessto essentiallearning,minimisingexcessiveeLearningcontent,andfosteringaninclusive,engagingenvironment, thisprogramwillempowernewemployeestocontribute confidentlyandcompetently fromthestartoftheir employmentwithCouncil.

Withconsistentmessaging,improvedattendanceandalignmenttoCouncil’sSERVEvalues,thisupliftnotonly enhancesindividualperformancebutalsosupportsacultureofexcellenceandcontinuouslearningacrossthe organisation.

LearningandDevelopmentstrivetoensureourstaffareadequatelyskilledandhavetheopportunityfor upskillingintheirroleswhichguaranteesservicedeliveryacrossTownsvilleispossible.Weinvestinourworkforce toundertakeNationallyRecognisedQualificationsinavarietyoffields.Thequalificationsthatareundertakenby ourworkforceinclude:

 CertificateIIIBusiness

 CertificateIVBusiness

 CertificateIIICivilConstruction

 CertificateIVCivilConstruction

 CertificateIIinDrainage

 CertificateIIIinIrrigation

 CertificateIIIinWaterIndustryOperations

 CertificateIVLibraryandInformationServices

 DiplomaGovernmentInvestigations

 CertificateIIIElectrotechnology

 CertificateIIIInstrumentationandControl

 CertificateIIIinHeavyCommercialVehicle

 CertificateIIIinEngineering (Fabrication)

 CertificateIIIinEngineering (Mechanical–Fitting/Turning)

 CertificateIIISportsTurfManagement

 CertificateIIIParksandGardens

 CertificateIIIOpenSpace(Arboriculture)

 CertificateIIIMobilePlantTechnology (MobilePlantEquipment)

 CertificateIIIinAutomotive Electrical Technology

 CertificateIVinProjectManagement

Theabovequalificationsincludethosethatarebeingundertakenbythe14ApprenticesthatCouncilonboardedin the2025EntryLevelintake.TheseApprenticesareinvaryingsectionsandtradesacrossCouncil,allplaying importantrolesinbuildingourcityforthefuture.

Outsideofshortcourseand skillsettraining,inthe2024/25year,96employeeshave eithercompletedorare currentlyactivelyenrolledin anationallyrecognisedvocationaleducationqualificationsupportedbyTownsville CityCouncilsStudyAssistanceProgram.

ThesenumbersreflectCouncilsbeliefthatthetruevalue ofourorganisationisinthe capabilityofourpeopleand thatwecontinuallyupskilltoensureourstaffareequippedwiththemostup-to-dateknowledge.Withdedicated LearningandDevelopmentteammemberscommittedto developingandsourcingindustry-bestlearning,weare abletodemonstratetoCouncilstaffthatwecontinuously strivetoprovidethemwithappropriateopportunities forpersonalandprofessionaldevelopment.

Duringthefinancialyear,CouncilcontinueditspartnershipwithNorthQueenslandWaterRegionalAlliance Program(NQQWRAP)tosupportourWaterIndustryWorkerProgram,whichisprovidinggrowthandskills developmentopportunitiesforourexistingwaterandwastewaternetworkstaff.Thistrainingutilises collaborationwithotherregionalCouncils,forexample,MackayandCairns,tomaketheprogramasuccess. Participantsinthisprogram completeaCertificateIIIinWaterIndustryOperations.Thistraininghasbeen runningatCouncilsince2019andwasspecificallydesignedtosupportourwaterindustryworkerswhoarea criticalpartofourworkforce, providingadirectandessentialfrontlineserviceforourcustomers. LearningandDevelopmentstrivetoensureoutreachtoschoolsandlocalcommunities,withtheteamjoined collaborativelybyvaryingsectionsacrossCouncil,toattendvariousCareersExposacrosstheregion.Townsville CareerExpowasahighlight, asthelargestexpoheldinTownsvillebeingattendedbyanumberofschoolsacross theregion.Studentsparticipatedinengagingdiscussions withPeopleandCultureand variousteam representatives,aroundthecareersandentrylevelpathwaysintoCouncil.Eventslikethishelpinspirethenext generationbystrengthening Council’sfutureworkforcethrougheducationaroundalltherolesCouncilplaysin ourcommunity.

PROCEDURES AND PRACTICES OF PUBLIC SECTOR ENTITIES

Council’sCorporateGovernanceandmanagementpracticeshaveproperregardtothe Public Sector Ethics Act 1994.Council’scorporateguidancedocumentsanddelegationsofauthorityaremonitoredandregularly reviewed.Corporateguidancedocumentsareexplainedtoemployeesatcommencementofemploymentand throughongoingtraining,as wellasbeingmadeavailableonCouncil’sintranet.

ADMINISTRATIVE ACTION COMPLAINTS

Counciliscommittedtofair,ethicalandtransparentmanagementofadministrativeactioncomplaints.This commitmentisdemonstratedbyourComplaintsManagementSystem(CMS) thataimstoprovideanaccessible, accountableandefficientmethodforaddressingcomplaintsinaccordancewiththeprinciplescontainedinthe Local Government Act 2009

Thepolicyisreinforcedbyaguidelinethatoutlinesdefinedadministrativeprocessforeffectivelyhandlingand resolvingcomplaintsraised bycommunitymembersonarangeofissuesincluding:

 adecision,orafailuretomakeadecision,includingafailuretoprovideawrittenstatementofreasonsfor adecision

 anact,orafailuretodoanact

 themakingofarecommendation

 ismadebyanaffectedperson(apersonwhoisaffectedbyanadministrativeactionofCouncil).

Councilisdedicatedtoconductingthoroughandtimelyinvestigationsforallcomplaints,withtheultimate objectiveofreachingaresolutionthatsatisfiesboththe Councilandthecomplainant.

Shouldcomplainantsbedissatisfiedwiththeoutcomeofthecomplaintinvestigation, ComplaintOfficersensure thatalladministrativeactioncomplaintdecisionnoticesincludeinformationonavailableappealoptionstothe QueenslandOmbudsman.

InaccordancewiththeLocalGovernmentRegulation2012,Councilisobligatedtodisclosetheadministrative actioncomplaintsreceivedandresolvedthroughthecomplaintsmanagementsystem.

*As at end of 30 June 2025.

RIGHT TO INFORMATION AND INFORMATION PRIVACY

TownsvilleCityCouncilcontinuestomakeiteasierforthepublictoaccesstheirinformation,maximisethe publiclyavailablecorporateinformationandidentifyinformationthatcanbeadministrativelyreleased.Council’s inductionprogramincludesarighttoinformationandinformationprivacycomponentstoeducateandraise awarenesstostaff.CouncilhasintroducedaRighttoInformationandInformationPrivacyeLearningmoduleto ensurestaffarekeptinformed.CouncilcontinuestopublishaDisclosureLogonthewebsite.

MoreinformationaboutCouncil’sRighttoInformationandInformationPrivacycanbefoundonCouncil’s website.

Table 11 – Right to information and information privacy

LIST OF REGISTERS

TownvilleCityCouncilhasseveralregistersopentopublicinspectionuponrequest.Thelistcanalsobefoundon Council’swebsite.

Register

BeneficialEnterprises

DogRegistry

RegisterofDogs

RestrictedDogRegister

RegulatedDogRegister

Registerofcost-recoveryfees

DelegationRegister

DevelopmentApplicationRegisterasAssessmentManager

DevelopmentApplicationRegisterasReferralAgency

EnvironmentallyRelevantActivitiesapplicationregister

Exemptioncertificatesregister

InformationAssetRegister

RegisterofInfrastructureChargesInformation

MajorContractsRegister

PetitionRegister

RegisterofPrivatelyCertifiedApprovals

RegisterofAnnualReturnsunderthe Environmental Protection Act 1994 (EPA) RegisterofAssetsandGifts

ADesignationRegisterofallDesignationsmadebyLocalGovernmentthatareineffect RegisterofCouncillorConduct

Registerofon-siteSewerageandGreywaterFacilities

RegisterofEnvironmentalAuthoritiesincludingSurrendered,SuspendedorCancelledAuthorities

RegisterofImpoundedAnimals

RegisterofInfrastructureAgreements

RegisterofInterimLandUsePlansunderthe Economic Development Act 2012 (EDA)

RegisterofLocalandSubordinateLocalLaws

RegisterofPDADevelopmentApplicationsundertheEDA

RegisterofPDADevelopmentApprovalsundertheEDA

RegisterofPermitsandInspectionCertificate(underthe Plumbing and Drainage Act 2018)

RegisterofProvisionalLandUsePlansundertheEDA

RegisterofRegulatoryFees

RegisterofShowCauseandEnforcementNotices(underthe Plumbing and Drainage Act 2018)

RegisterofSubmittedPlansofOperationundertheEPA

RegisteroftheTestableBackFlowDevices

RoadsMap

StatementofInterests

SupplementaryInformationElectoralDonations

SERVICE, FACIILITY OR ACTIVITY

Therearenodetailstoreportonforthefinancialyearunderthissection190(d) oftheLocalGovernment Regulation2012,onactiontakenfor,andexpenditureon,aservice,facility,oractivity:

i) suppliedbyanotherlocalgovernmentunderanagreementforconductingajointgovernment activity;and ii) forwhichthelocalgovernmentleviedspecialratesorchargesforthefinancialyear.

SPECIAL RATES AND CHARGES

NellyBayHarbourDevelopmentspecialratelevyisappliedtomaintainingwaterqualityinthecanals,dredging thecanals,maintainingtherockwallsaroundthecanalareaandmaintainingthesedimentbasininGustavCreek. Aspecialrateofzerocentsinthedollarontherateablevalueofthelandappliestoidentifiedpropertiesforthe 2024/25year.

TheRuralFireBrigadeAnnualChargeisleviedonrateablelandsservicedbytheruralfirebrigadeslistedbelow. Thefundsraisedfromthischargeareprovidedtothevoluntaryruralfireservicessotheycanacquireand maintainfire-fightingequipment,providetrainingtovolunteersandtoenablethemtooperatethroughoutthe ruralareasoftheregion.

CONCESSION FOR RATES AND CHARGES

During2024/25Councilgrantedarangeofratesandchargesconcessions.Inaccordancewithsection190(1)(g) of theLocalGovernmentRegulation2012,asummaryofallconcessionsgrantedforratesandchargesisdetailed below.

HARDSHIP CONCESSION

Councilprovidedconcessionsonthegroundsthatpaymentoftheratesorchargeswillcausehardshiptocertain landowners.ConcessionsprovidedundertheHardshipConcessionPolicyincludedinterestfreepaymentplans andratedeferrals.FurtherdetailscanbefoundonCouncilswebsite–AppendixH:HardshipConcessionPolicy.

PENSIONER RATE CONCESSION

Aconcessionwasofferedto approvedpensionerswhoownandoccupytheirpropertyastheirprincipalplaceof residence.Thisappliedonlyifallratesandchargesleviedforthefinancialyearwerepaidinfullby31May2025. Themaximumpensionerratesconcessionavailablewas$800fortheyear.

Theamountofpensionerratesconcessionavailabletoeachapprovedpensionerwascalculatedbyreferenceto theproportionofafullpensionthattheratepayerreceived,andtheproportionateownershipshareoftheowneroccupiedproperty.

FurtherdetailsonthePensionerRatesConcessionPolicy areavailableonCouncil’swebsite–AppendixI: PensionerRatesConcessionPolicy.

PRE-2016 PENSIONER ARREARS CONCESSION

Councilprovidedratesconcessionstoassisttheownersof propertiesidentifiedinthePre-2016PensionerArrears ConcessionPolicywithsignificantratearrears.Theconcessionincludedarebateofallinterestcharges.

FurtherdetailsareavailableonCouncil’swebsite–AppendixJ:Pre-2016PensionerArrearsConcessionPolicy.

NOT-FOR-PROFIT CHARITABLE GROUP CONCESSIONS

Councilallowedaconcessionofgeneralratesandutilities chargestoeligiblepropertyownersinrecognitionof thecontributiontheiractivitiesmadetothecommunity,andallowedothertargetedconcessionswherethe grantingoftheconcessionencouraged:

 economicdevelopmentofall orpartoftheTownsvillelocalgovernmentarea

 thepreservation,restorationsandmaintenanceoflandthatisofcultural,environmental,historical, heritageorscientificsignificancetoTownsville.

FurtherdetailsontheCharitableandCommunityOrganisationsRatesandChargesConcessionsPolicyare availableonCouncil’swebsite–AppendixK:GeneralRatesandUtilityChargesConcessionsPolicy.

REDUCTION OF WATER CONSUMPTION CHARGES CONCESSION

Incertaincircumstances,Councilprovidedreducedwaterconsumptionchargesforpropertyownerswhobecame responsibleforthosechargesasaresultofaconcealedleak.Whereanapplicationforareductioninwater consumptionchargeswasapproved,forbothStandardPlanandWaterWatchers,allexcesswaterwasbe chargedatarateequivalentto90%ofthewaterwatchers’rateapplicableintherelevantconsumptionyear.

FurtherinformationisavailableonCouncil’swebsite– AppendixL:ReductionofWaterConsumptionCharges Policy.

CONCESSION OF WATER CHARGES FOR HOME HAEMODIALYSIS PATIENTS

Councilprovidedaconcessionforwaterservicechargesincurredinrespectofkidney diseasepatientswhowere undergoinghomehaemodialysistreatment.Theconcessionwas$0.685perdaythroughouttheperiodofhome haemodialysis,administeredoneachhalfyearlyratenotice.

FurtherinformationisavailableonCouncil’swebsite– AppendixM:ConcessionofWaterChargesforHome HaemodialysisPatientsPolicy.

CONCESSION OF DISPOSAL FEES FOR CHARITY BIN WASTE

Councilwaivedfeesassociatedwithdisposalofwastefromcharitybinsforcharitableorganisationsthatoperated acharitybinservicetoraise fundsforacharitablepurpose. FurtherinformationisavailableonCouncil’swebsite– AppendixN:ConcessionofDisposalFeesforCharityBin WastePolicy.

REPORT ON INTERNAL AUDIT

InternalAuditisanindependent,objectiveassuranceandadvisoryactivityestablishedwithinCouncildesignedto addvalueandimproveoperationsandgovernance.TheunitoperatesundertheCouncil’sInternalAuditPolicy andinaccordancewiththeInternalAuditCharterwhichisendorsedbytheCouncil’sAuditandRiskCommittee. TheCharterauthorisesdirectaccesstotheAuditandRiskCommitteethroughtheChairandappropriateaccess toallactivities,records,propertyandpersonnelwithinCouncil.InternalAuditappliesarisk-basedapproachtoits activitiesandworksclosely withthecorporateRiskManagementfunctiontogainriskandassurancecoverage acrossCouncil. TheInternalAuditunitisguidedbyastrategicplanapprovedbytheAudit&RiskCommitteeand providesanannualreportto theCommitteeonoverallprogressoftheuniteachyear.

TheInternalAuditfunctionis conductedbyafull-timeInternalAuditorandsupplementedwithco-sourced resourcing.

Council’sInternalAuditorisrequiredtoundertaketrainingactivitiesinalignmentwithprofessionalmembership requirementsandaspartoftheannualInternalAuditPlan,whichisapprovedandmonitoredbytheCouncil’s AuditandRiskCommittee.TheInternalAuditorisaspecialistwiththefollowingprofessionalaffiliationsand qualifications:

TheInternalAuditunitappliesarisk-basedapproachtoitsplanningandauditactivitiestoproduceanassurance mapforthebusinesswhichsupportsnominationofprospectiveassuranceprojects.Annualandthree-year InternalAuditplansarepreparedbasedonCouncil’sEnterprise-WideRisk Managementassessmentsandarange ofotherrelevantsourcesofinformationincludingtheQueenslandAuditOffice,Statedepartments,Instituteof InternalAuditors,andotherlocalgovernments.TheCouncil’sAuditandRiskCommitteereviews,approvesand thenmonitorsperformanceagainstthisplanatmeetings.Fortheyearended30June 2025,InternalAuditand externalproviders,completedsixreviewsacrossCouncilinaccordancewiththeInternalAuditPlanincludingthe followingareas:

 Landfillmanagement

 Lowvalueassetcontrols

 Dammanagement

 OperationCentreprocesses

 Workforcemanagement

 Emergencyevacuationplanning

Additionally,InternalAuditconductsongoingmonitoring andmanagementofpreviouslyraisedauditfindings. TheInternalAuditunitworkscollaborativelywithmanagementtorecommendimprovementstosystems, processes,workpractices,complianceandbusinesseffectiveness,remainingindependentandobjectiveinthe fulfilmentofitsduties.

InternalAuditcomplieswithQueenslandGovernmentlegislativerequirementsforthe conductofinternal auditinginadditiontomeetingtheprofessionalstandardsoftheInstituteofInternalAuditors.TheInstitute’s standardsrequireanexternalqualityassessmentatleasteveryfiveyearswhichCouncillastcompletedinApril 2024.CouncilmonitorstheongoingqualityofitsInternalAuditfunctionthroughactivitieswhichincludequarterly progressreportsandcustomersurveysofkeystakeholders.InternalAudithasimplementedchangestoachieve compliancewiththestandardswhichbecameeffectiveon9January2025.

EXTERNAL AUDIT

CouncilisauditedexternallyeachyearbytheQueenslandAuditOffice(ortheirappointedcontractors).During the2024/25financialyeartheannualexternalauditofCouncil’sfinancialstatementswasconductedbyCrowe AuditAustralia.

AUDIT AND RISK COMMITTEE

TheAuditandRiskCommitteeisanadvisorycommitteeof Council,whichprovidesanindependentforumwhere representativesofCouncil,independentspecialistsandmanagementworktogetherto fulfilspecificgovernance responsibilitiesassetoutinitsTermsofReference,whichincludesoversightofthe:

 Integrityoffinancialdocuments

 InternalAuditfunction

 Progressofauditactionitems

 Effectivenessandobjectivityofinternalauditors

 Independenceandobjectivityofexternalauditors

 Riskmanagementframeworkandprocessesrelatedtoidentificationofsignificantrisksandthreats During2024/25theAuditandRiskCommitteeconsideredreportsfromarangeofsourcesrelatingtoavarietyof topicsincluding:

 Compliance

 Financialmanagement

 Governance&Fraud

 Policy&keyguidancedocuments

 Internalcontrols

 Financialstatements

 Emergencyresponseandbusinesscontinuityactivities

 Enterpriseriskmanagement:riskappetitemanagement, strategic&operationalriskassessment

 Internalaudit:compliancewithnewglobalinternalaudit standards,independenceandobjectivity, strategicdirection,planning,resourcing,monitoringofprogressandcommunicationoffindings

 Externalaudit:strategy,briefingsandfindingsfromperformanceandfinancialstatementaudits

 QualityAssuranceoverRiskManagement,InternalAudit andAuditandRiskCommitteeactivities

TheAuditandRiskCommitteemonitoredmanagementprogressinaddressingvariousauditfindingsacross businessactivitiesduringtheyear.

TheAuditandRiskCommitteemeetingsandthepresentationofthemeetingminutes toFullCouncilareshownin Table13.

Table 13 – Audit and risk committee meeting dates and presentation of minutes

TheAuditandRiskCommitteehasfourmembers,twoindependentofCouncilandtwo Councillors.Membership oftheAuditandRiskCommitteeforthereportingperiodareshowninTable14.

Table 14 – Audit and risk committee memberships

Name and Position Qualifications and Memberships

MsRenitaGarardAM Independent Member and Chair of the Audit and Risk Committee

MsHelenStanton Independent Member of the Audit and Risk Committee

FellowofCharteredAccountantsAustralia&NewZealand(CAANZ),Graduate Memberof theAustralianInstituteofCompanyDirectors (GAICD),Bachelorof Business, majoringinAccountingandBusinessLaw.Over25years’experience inthefinancialservicesindustryandindomesticandinternationalgovernance roles.

MsStantonisanexperiencednon-executivedirectorand independentadvisor, withspecialistskillsingovernanceandoperationalrisk.Shehasservedon manyauditcommitteesasanon-executivedirector,includingLowerBurdekin Water,CleanCoQueenslandLtd,MaterHealthServicesNQ,EnergyQueensland Ltd,NorthernTerritoryPowerandWaterCorporation,andErgonEnergy CorporationLimited.MsStantonholdsadegreeinMineralsProcessing EngineeringandisanAICD graduate.

CrAndrewRobinson

Councillor and Member of the Audit and Risk Committee

CrVeraDirou

Councillor and Member of the Audit and Risk Committee for the period 1 July 2024 to 28 August 2024

Memberof theCertifiedPracticingAccountantsAustralia(CPA).Graduate Memberof theAustralianInstituteofCompanyDirectors (GAICD).Bachelorof Commerce.QueenslandJusticeofthePeace(Qualified).CrRobinsonisa graduatefromtheRoyalMilitaryCollege,Duntroonandservedfor13yearsas anOfficerintheRoyalAustralianArmyMedicalCorpsbeforeworkinginthe privatesector.CrRobinsonworkedforPricewaterhouseCoopersinboth taxationandauditbeforetakingonhisroleastheRegionalAdvisor(Finance& Business) NorthernRegionfortheDepartmentofTransportandMainRoadsfor 15years. CrRobinsonhasservedasaDirectorforabank,DefenceBank (DEFCREDIT) andiscurrently ontheboardofonelocalinvestmentfirms.

DiplomaofQualityAuditing,SAILeadAuditor,RABQSAQuality/SafetyLead Auditor,SAIDemystifyingISO 9001:2000/InternalAuditor. CrDirouhasover20years’experienceinvariouscapacitieswithinthe DepartmentofDefence.

CrTroyThompson*

Mayor and Member of the Audit and Risk Committee for the period 28 August 2024 to 22 November 2024

MayorofTownsvilleCityCouncil.CompletingAustralianInstituteofCompany Directorscourse(GAICD).ChiefOperationsManager– Miningsupplier GlobalCEO ofSupplyChainorganisation.GlobalOperationsManagerSupply Chainorganisation.

ChairpersonofAitkenvaleSportingAssociation–NFP.ChiefOperations Manager,DewateringandPilingcompany. Businessowner25years.MemberofChamberofCommerceUK&Australia. Memberof ChamberofCommerceGermany&UK.GasfitterwithSECWA.Army Reservist–SignalsandCateringCor.

CrPaulJacob

Councillor and Member of the Audit and Risk Committee for the period 4 December 2024 to 17 December 2024

CrAnn-MareeGreaney Councillor and Member of the Audit and Risk Committee for the period 17 December 2024 to 30 June 2025

*Refer to note on page 31

ElectronicsandCommunicationsTechnicianforTelephonyandSatellite Stations. TechnicalOfficerattheSatelliteEarthStationinMoree. Technical OfficerintheRoyalAustralianNavyTrialsandAssessingUnit. Sincereturning toTownsvilleover30yearsagoCrJacobhasworkedforTownsvilleHuman Capital,JamesCookUniversityandtheTownsvilleHospitalbeforehiselectionas aTownsvilleCityCouncillorin2016andre-electionagainin2024.

ActingMayorofTownsvilleCityCouncil. MemberofAustralianInstituteof CompanyDirectors. DiplomaofEducation. ExecutiveCertificateinEvent Management. FormerBoardMemberoftheCowboysLeaguesClub.Councillor GreaneywasfirstelectedasaCouncillorin2016. Priortobecominga Councillor,sheworkedwithTec-NQ,theTownsvilleHospitalFoundationand over10yearswithTownsvilleCityCouncilasSpecialEventsandProtocolOfficer.

NUMBER OF INVITATIONS TO CHANGE TENDER

TherewerenoreportableinvitationsmadebyCounciltochangetendersduringtheperiod.

BENEFICIAL ENTERPRISES

Section39(3) ofthe Local Government Act 2009 definesabeneficialenterpriseasanenterprisethatalocal governmentconsidersisdirectedtobenefiting,andcanreasonablybeexpectedtobenefit,thewholeorpartof itslocalgovernmentarea.

Section39(4) ofthe Local Government Act 2009 providesthatalocalgovernmentisconductingabeneficial enterpriseifthelocalgovernmentisengagingin,orhelping,thebeneficialenterprise.

CouncilparticipatedinbeneficialenterpriseswiththeTownsvilleBreakwaterEntertainmentCentreJointVenture duringthe2024/25financial year.

Councilholdsa50%shareholdinginNQSparkPtyLtd.Thiscompanyisresponsiblefortheestablishmentand operationofanadvancedsimulationfacilityinTownsvilleandwillcontributetothedevelopmentofindustry sectorsincludingemergency services,anddisastermanagement.

Councilholdsa100%shareholdinginNorthRailYardDevelopmentsPtyLtd.Thiscompanyhasbeenestablished toprovidehigh-densityresidentialhousingwithuniqueandexcitingcommercial,culturalandheritage opportunitieswithintheWaterfrontPriorityDevelopment Area.

SIGNIFICANT BUSINESS ACTIVITIES

TownsvilleCityCouncilconductedthefollowingsignificantbusinessactivitiesduring thefinancialyear:

 WaterServices

 ResourceRecovery

Council’swater,sewerage,resourcerecoveryandwastemanagementactivitieswere consideredsignificant businessactivitiesfortheperiodandappliedthecompetitiveneutralityprinciplethroughtheapplicationoffull costpricing,identifyingthecostofcommunityserviceobligationsandeliminatingthe advantagesand disadvantagesofpublicownershipwithinthatactivity.

Whenassessingbusinessactivitiesaspartofthedevelopmentofthe2024/25budget,section19oftheLocal GovernmentRegulation2019prescribedthethresholdsthatabusinessactivitymustmeettobeasignificant BusinessActivityforthefinancialyear:

 If thebusinessactivityistheprovisionofcombinedwater andsewerageservices,thethresholdis10,000or morepremisesbeingconnectedtoawaterserviceasofJune30ofthefinancialyear, endingimmediately beforethecurrentfinancialyear.

 Foranyotherbusinessactivity,thethresholdisexpenditureofatleast$9.7millionforthefinancialyear endingimmediatelybeforethecurrentfinancialyear.

Nonewsignificantbusinessactivitieswereidentifiedduringthefinancialyear. FurtherinformationcanbefoundinNote25:Nationalcompetitionpolicy,ofCouncil’sfinancialstatementswhich formspartofthisannualreport.

COMPETITIVE NEUTRALITY

Noinvestigationnoticeswereissuedin2024/25bytheQueenslandCompetitionAuthorityforcompetitive neutralitycomplaints.

WATER ANNUAL OPERATIONS REPORT

OUR OBJECTIVE

Water Services' objective is to provide safe, reliable and sustainable water and wastewater services for the benefit of the Townsville community.

PURPOSE OF THIS REPORT

This Operations Report is designed to provide an overview of the operations and performance of Water Services for the 2024/25 financial year, as measured against its Annual Performance Plan.

Section 190(1)(c) of the Local Government Regulation 2012 requires that Townsville City Council must include an Annual Operations Report for each commercial business unit in the Council's Annual Report.

WATER FAST FACTS

Water Services is a significant business activity of the Townsville City Council, providing water and wastewater services to the Townsville Community. It supplies potable water, collects and treats wastewater and supplies recycled water.

ASSESSMENT OF OPERATIONS

Significanteventsandinitiativesundertakenduringtheyeararesummarisedbelow.

BLUE-GREEN ALGAE

Councilcontinuestoadaptandmanagetheimpactsonrawwaterqualitycausedbythepresenceofbluegreen algaeinRossRiverDam.Bloomsorhighlevelsofalgaecanaffectthetreatmentand productionofpotablewater bycloggingfiltersandincreasingtheamountofchemicalsusedtodisinfectthewaterandremoveanyimpurities. Blue-greenalgaebloomscontinuedtoimpactrawwaterqualityin2024/25asweatherconditions,nutrientsand algaelevelsintheRossRiverDamfluctuatedthroughout theyear.Theunprecedented rainsexperiencedfrom JanuarytoMarch2025resultedinextendedreleasesfromRossRiverDamresultinginalgaelevelsreducinginthe dam.CoupledwithacoolerwinterperiodCouncilhasexperiencedloweralgaelevelsthanthesameperiodofthe previousyear,howeverwecontinueanextensivemonitoringprogramtoensuretheprovisionofsafedrinking watertotheTownsvilleCommunity.

In2024/25Councilmaintained100%compliancewiththe AustralianDrinkingWaterGuidelines(ADWG).

WET WEATHER RESILIENCE PROGRAM

TownsvilleexperiencedunprecedentedwetweathereventsbetweenJanuaryandMarch2025,receivingmore than2,400mmofrainacrosstheperiod.Duringtheserain eventsCouncil’swastewater networkexperienced prolongedperiodsofinundationandinflowfromrainwater.Thisresultedinperiodswherewastewaternetwork capacitywasrestricted.Councilreceivedreportsfrom470properties(0.6%ofpropertiesconnected)ofsewage overflowsattheirpropertyduringorimmediatelyfollowingrainevents.

Ofthe470properties,26reportedsewageoverflowsinternallyattheproperty.Councilhasengagedwitheach residentofthesepropertiesandconductedsiteinspectionstoassisttheresidenttoidentifythepotentialcauses ofsewageoverflowandsupportthemtotakestepstomitigatefuturesewageoverflowswherepossible.

Councilisinvestigatingvariousinfrastructureandoperationalworkstoimprovethenetworksperformance duringdrytropicswetweathereventsincluding:

 A2-stageinfrastructureupgradetotheWulguruwastewaternetworkinvolvingupsizinganddiverting currentnetworkelementsto provideincreasedcapacitytomeetsignificantwetweatherevents.

 Continuationofanextensive sewerreliningprogramtorenewthefunctionofapproximately4.5kmof wastewaternetworkacross Townsville.

 Reviewingandupdatingwastewaterpumpstationoperatingparameterstoincreasethecapabilityto manageexcessloadinginthenetwork.

TheseannualworksprogramsareimportanttomaintainingourwastewaterservicestotheTownsville community.

TOWNSVILLE LABORATORY SERVICES

During2024/25theScientific Servicesteamhassuccessfullyvalidatedper-andpolyfluoroalkylsubstances(PFAS) analysisinsoilsandbiosolids,buildingonourcurrentNationalAssociationofTestingAuthorities(NATA) accreditationforPFAStestinginwater.ThesupportingdatahavebeensubmittedtoNATAforinclusioninthe TownsvilleCityCouncil’sscopeofaccreditation.Thisexpandedcapabilityiscriticalforevaluatingbiosolidsinline withtheEndofWasteCodeissuedbytheQueenslandGovernment.

Inanationalfirst,wecollaboratedwithCharlesRiverMicrobialSolutionstovalidateEndosafe®Trillium™—an innovative,animal-freealternativetotraditionalLimulus AmebocyteLysate(LAL)testing.Ourteamconfirmed thatthismethod,whichuses syntheticreagentstoreplicatethenaturalLimulusAmoebocyteLysatereaction, eliminatestheneedforhorseshoecrabblood.Thismarksasignificantsteptowardsmoreethicaland environmentallysustainable endotoxintesting.

WehavealsocompletedtheinstallationoftwoadvancedGasChromatographicsystemstosupporttheanalysisof volatileandsemi-volatileorganiccompounds, aswellaspesticides.Thisinvestmentenhancesourtechnical capabilities,reducesoperationalcosts,andstrengthens oursupportforenvironmentalconsultantsthroughout theregion.Theteamisworkinginthevalidationofthese methods.

Inparallel,ourscientistsareadvancingthelab’smetaltestingservicesbydeveloping speciationmethodsfor arsenicandchromium.Whiletheseelementshavelongbeenpartofouranalyticalsuite,theabilitytodistinguish theirmoretoxicformswilldelivernewlevelsofaccuracyandinsight—offeringafirst-of-its-kindserviceinthe region.Theteamisworking tosubmittheseforinclusioninourNATA’sscopeofaccreditation.

Inaddition,wearenowactivelysupportingcollaborative researchbetweenCouncilandacademicinstitutions.We arecurrentlyworkingwithourcandidatesandteamsinbothJamesCookUniversityandMonashUniversityon scalablesolutionsforblue-greenalgaemanagement—anareaofgrowingoperationalimportance.

Tosupportthiscontinuedgrowthanddiversification,theteamhasalsoundergonean organisationalrestructure alignedwithCouncil’sbroaderstrategicdirectiontoexpandenvironmentalandscientificservicesacrossthe region.

MAJOR INVESTMENTS

During2024/25,WaterServicesinvestedinthebelowwaterandwastewaterinfrastructure.

Table 15 – Water services major investments

COMMUNITY SERVICE OBLIGATIONS

Table 16 – Water Services community service obligations

Priceconcessions–waterandwastewaterchargesin recognitionofanactivity’scontributiontothesocialand culturalwelfareofthecommunity

non-profitorganisations

CHANGE TO THE ANNUAL PERFORMANCE PLAN

Nochangesweremadeduringthefinancialyear.

COUNCIL DIRECTIONS TO WATER SERVICES

CouncilmadenodirectionstoWaterServicesduringthefinancialyear.

PERFORMANCE TARGETS

Inthe2024/25financialyear, WaterServicesmeasuredits performanceagainstthebelowperformanceindicators asoutlinedinitsAnnualPerformancePlan.

Table 17 – Water Services performance target 2024/25 results

Percentageofcompliancewithalldrinkingwaterquality requirementsinaccordancewithTownsvilleWater’sDrinking WaterQualityManagementPlan

Numberofwaterqualityandwaterpressurecomplaintsin accordancewithTownsvilleWater’sCustomerService Standards

unplannedinterruptions(excludingexcavations)

Numberofpenaltyinfringementnoticesissued,orinstances oflegalactioninitiatedbytheregulatorfornon-compliance withrespecttoseweragetreatmentorreticulationactivities

Numberofdryweathersewerageoverflows,bypassesor releasestotheenvironmentthatwerenotcausedbyathird partyornaturalphenomenon

Percentageofcompliancewithregulatoryrequirements, servicestandardsandenvironmentallicencerequirements

* Ratio reflects deferral of renewal projects to the 2025/26 financial year, primarily resulting from the reallocation of resources to natural disaster recovery efforts.

† The 5 sewage releases referred to occurred due to asset failures. Four are related to sewer rising main breaks and one is related to a damaged air valve on a main that released a small volume of sewage before being rectified

‡ Council has a strong commitment to safety and targets a reduction of 20% of Lost Time Injuries (LTIs) from those from the previous financial year. Water Services reported two more LTIs in the financial year than the previous year and therefore did not achieve the targeted reduction.

RESOURCE RECOVERY

OUR OBJECTIVE

Resource Recovery's objective is to contribute to the delivery of a healthy and eco-friendly city through the provision of waste and recycling services that deliver safe, reliable, affordable and sustainable waste management and resource recovery services for the city.

PURPOSE OF THIS REPORT

This Operations Report is designed to provide an overview of the operations and performance of Resource Recovery for the 2024/25 financial year, as measured against its Annual Performance Plan.

RESOURCE RECOVERY FAST FACTS

Resource Recovery is a significant business activity of the Townsville City Council, providing solid waste management and recycling services to the Townsville community through waste collection, transportation, recycling and disposal.

Resource Recovery Services

312,410 customer visits received 291,489 tonnes for processing

ASSESSMENT OF OPERATIONS

Significantinitiativesundertakenduringtheyeararesummarisedbelow.

NQ RECYCLING ENTERPRISE PRECINCT & BULK TRANSFER STATION

TheTownsvilleWasteandResourceRecoveryInfrastructureReportproducedin2021identifiedtheneedfor developmentofaregionalRecyclingEnterprisePrecincttoaggregatedivertedproductsandcreatethe economiesofscalerequiredtoincentiviseinvestmentinthelocalcirculareconomyanddevelopmentoflocal remanufacturingcapacity.Toprogressthis,ResourceRecoverydevelopedaScoping andDefinitionStudyReport, OptionsReport,andSitingStudy.Thesereportsdefinedthestrategicneed,scopeand definition,ofthe requirementsforanewRecyclingEnterprisePrecincttoservicenotonlyTownsville,butthegreaterNorth QueenslandRegionalOrganisationofCouncils(NQROC).Followingthesereports,adraftreportwith recommendationswaspresentedtoExecutiveinthethird quarterofthe2024/25financialyear.

STUART WASTE FACILITY LANDFILL GAS CAPTURE

Landfillgasiscomprisedofapproximately50%methane– aharmfulgreenhousegaswithaglobalwarming potentialthatis80timesgreaterthancarbondioxide.Counciliscurrentlymanagingtheproductionof biomethanethroughathermalconversionprocessbeingconductedunderthecontractwithLMSEnergyPtyLtd. Therecentbiogassysteminstallationexpansionworkshaveresultedinanupliftinproductionandassociated carboncredits.Asecondflarewasinstalledin2023,andthereareplanstoinstalltwogeneratorsthatwillconvert thecapturedmethanegasintoelectricity.Theelectricitygeneratedwillbefedintothegridsystem.LMSEnergy approachedCouncilinQuarter1of2024/25financialyear,witharequesttoextendthecontracttoallowforthe installationofgeneratorsbecauseofincreasedgeneratorcosts.Councilistheprocessofreviewingthiscontract withtheaimofrenegotiatingthetermswithLMSEnergy.

TOWNSVILLE CITY COUNCIL ORGANICS BUSINESS CASE

FollowingcompletionoftheOrganicsRoadmapinearly2021andthe2021/22FoodOrganicsandGarden Organics(FOGO)trial,ResourceRecoveryisworkingonadetailedbusinesscasewithoptionstobepresentedto Councilinearly2026.Thebusinesscasewillconsiderthesocial,economic,environmentalandgovernance arrangementsofimplementingathirdkerbsidebinforcollectionandprocessingoforganicwaste.Deliveryofthe businesscaseformspartofCouncil’spreparationforthe potentialintroductionofadomestickerbsideorganics service.

CAPITAL INVESTMENT IN WASTE

Capital works were carried out during the financial year to ensure Council continues to meet its waste and resource recovery obligations for its community, while managing the social license for its sites, and maintaining the sites in an environmentally compliant manner. As a result, $5.3m was spent in capital expenditure across the portfolio which included the following key projects:

 Design of Stuart Landfill Cells 4 & 5

 Continued rehabilitation and post-closure care works at the Jensen Landfill

 Upgrade of the Stuart Waste Facility Weighbridge.

 Design works for additional infrastructure at the Stuart Waste Management Facility such as

o a truck wash and service bay

o a stormwater sedimentation pond

o a landfill leachate management system

 Purchase and repair of TCC bulk bins

 Continued construction of a “quick fill water tank” to assist with firefighting capacity at the Stuart Waste Management Facility

 Installation and Renewal of In-Vehicle Management Systems for 26 Waste Collection Trucks.

WASTE MINIMISATION AND EDUCATION ACTIVITIES

Waste reduction and recycling face-to face engagements continued during the financial year. Activities included engagement with early learning centres, schools, workplaces, and community groups. Over the year, Council’s Resource Recovery Educator delivered 58 education sessions at the Townsville’s Materials Recovery Facility (MRF) to more than 1,300 primary school students. Our Resource Recovery Educator also held tours at the MRF and manned stalls at community events. To address fire risk in bins, Resource Recovery has continued to produce social media messaging about keeping combustible items and batteries out of bins, educating community on the correct disposal.

Council also introduced initiatives such as:

 The Uniform Recycling program which has been very popular and have diverted more than 150kg away from landfill. Items diverted include work uniforms, hard hats, steel cap boots and other safety wear.

 The Reusable Rebate program encouraging residents to use reusable nappies and sanitary items. More than 600 members of the community received a rebate helping to divert these items from landfill.

 The Bin-Health Check Program which commenced in March 2025 and has continued into the 2025/26 financial year. A few delays have occurred in response to weather events, contractor availability and modification to the program.

 Procurement of a new educational tool to make recycled pens from plastics bottle lids, which has become very popular with the community.

MAJOR INVESTMENTS

During 2024/25, Resource Recovery invested in the below resource recovery infrastructure. Investment primarily related to rehabilitation of the Jensen Landfill site.

Table 18 – Resource Recovery major investments

COMMUNITY SERVICE OBLIGATIONS

CHANGES TO THE ANNUAL PERFORMANCE

PLAN

Nochangesweremadeduringthefinancialyear.

COUNCIL DIRECTIONS TO RESOURCE RECOVERY

CouncilmadenodirectionstoResourceRecoveryduring thefinancialyear.

PERFORMANCE TARGETS

Inthe2024/25financialyear, ResourceRecoverymeasureditsperformanceagainstthebelowindicatorsas outlinedinitsAnnualPerformancePlan.

20 – Resource Recovery performance target 2024/25 results

Responsetimetonewresidentialkerbsideservicecommencement

Responsetimetorepair/replacementrequestsforwasteand/or recyclingservices

noticesorlegalactionfor non-compliance Numberofpenaltyinfringementnoticesissuedorinstancesoflegal actioninitiatedbytheRegulatorfornon-compliance

reportedtoDepartmentof EnvironmentandScience

Numberofincidents,whichexceedtheacceptablelimit,thatwas requiredtobereportedtotheDepartmentofEnvironmentand Science

*Favourable result to budget primarily driven by increased revenue from higher commercial tonnage volumes at the landfill combined with higher-thanexpected sale of scrap, increased commercial bin collections and improved efficiencies.

†Severely impacted by the sustained weather events over the January-March period followed by a shortage of drivers and trucks in March.

‡As the city continues to grow, adjustments are required to the operational service model. Demand of the service has been exacerbated by bins from a new supplier that are breaking down quicker than anticipated. Also adversely impacted by flooding due to several days where delivery, repair or replacement could not be achieved.

§Majority of notifications to the department were related to uncontrolled storm water releases due to impacts from the January-March weather events. There had also been one fire notification and one groundwater exceedance. Target is unrealistic as fires and uncontrolled stormwater releases following rain events are reported to DETSI as incidents. Performance measure has been removed from 2025/26 reporting.

‖Resource Recovery set a target of Zero LTl's for the financial year. Our focus is to understand the factors causing these for the purpose of mitigating these risks.

GLOSSARY AND INDEX

GLOSSARY

Term Definition

AdministrativeDirective

AnnualBudget

AnnualReport

Asset

AustralianAccounting Standards

Blue-GreenAlgae

Community

CommunityEngagement

CorporatePlan

Councillors

FinancialStatements

DescribeswhattheChiefExecutiveOfficer(actingundersection257ofthe Local Government Act 2009) considerstobeappropriateinrelationtospecific issuesarisingoutofeitherlegislationorCouncildecisions.Theygenerally relatetotheimplementationoftheday-to-dayoperations oftheCouncil. AdministrativedirectivesareconsideredbyDirectorsand SeniorManagers andapprovedbytheChiefExecutiveOfficer.

TheCity’sannualbudgetidentifiestheplannedexpenditureandrevenue approvedbyCouncilforafinancialyear.Thisincludesany specificactivitiesas priorityundertheOperationalPlan.

AStatutoryreportunderthe Local Government Act 2009 thatprovides accountabilitytothecommunityforthepastfinancialyear.Thereport containsasummaryofprogresstowardtheCityVisionthrough implementationoftheCorporateandOperationalPlans,theauditor’sreport, auditedfinancialstatements andanaddressbytheMayorandCEO.

Anitemthathaspotentialor actualvaluetoanorganisation.

AccountingStandardsissuedbytheAustralianAccountingStandardsBoard thatareequivalenttostandardsissuedbytheInternationalAccounting StandardsBoard.ThesestandardsarebindingonQueenslandCouncilsandall otherbodiesestablishedpursuanttothe Local Government Act 2009.

Microscopicorganismsfoundinwaterthatcanproducetoxinsandaffect waterquality.

Agroupofpeoplelivinginthesamelocalityandunderthesamegovernment.

CommunityengagementisinteractionbetweentheCityandanysectionof thecommunity,eitherindividuallyorasagroup,andincludesinformation sharing,consultationand/or activeparticipation.

TheCity’sCorporatePlanoutlinestheCouncil’svisionandtranslatesitinto mediumandlong-termpriorities,outcomesandstrategiesforaminimum five-yearperiod.

ElectedrepresentativesofCouncilwhoservea4-yearterm.

TheStatementofComprehensiveIncome,StatementofFinancialPosition, StatementofChangesinEquity,StatementofCashFlows preparedin accordancewithAustralianAccountingStandardstogetherwiththenotesand certificationstatements.

Governance

Liveability

Theprocessbywhichdecisionsaretakenandimplemented,organisationsare controlledandmanagedtoachievetheirobjectives,andtheprocessbywhich organisationsaredirected,reviewedandheldtoaccount.

Liveabilityreferstoacombinationoffactorsthatcontributetoqualityoflife. Theseincludetheimpactof builtandnaturalenvironmentaswellas economic,socialandculturalfactors.

Local Government Act 2009

LocalGovernment AssociationofQueensland (LGAQ)

Locallaws

MYRBudget

Objective

OperationalPlan

Personalprotective equipment(PPE)

Policy

Service

TheprincipallegislationwhichprovidesthelegalframeworkforQueensland’s localgovernmentsector.

ThepeakbodyforlocalgovernmentinQueensland.Anot-for-profit associationsetupsolelytoservethestate’s77Councilsandtheirindividual needs.

ThoselawsunderthejurisdictionoftheCouncilandenforcedbycitystaff and/orPolice.

Mid-year(MYR) budgetreviewadoptedbyCouncilthroughoutthefinancial year.TheMYRreplacestheadoptedbudget.

Somethingtowardwhichworkistobedirected,astrategicpositiontobe attained,orapurposetobe achieved,aresulttobeobtained,aproducttobe produced,oraservicetobeperformed.

Adocumentwithaone-yearoutlook,whichoutlinesthekeyactivitiestobe undertakentoachievethedesiredoutcomessetoutintheCorporatePlan. Thisisalegislativerequirement.

Referstoanythingwornorusedtominimiserisktoworkers’healthand safety.Thismayincludebutisnotlimitedto;boots,earplugs,facemasks, gloves,goggles,hardhats,highvisibilityclothing,safetyshoesandsunscreen.

AstatementformallyadoptedbyCouncilthatdescribestheCouncil’sposition onaparticularissue.AllpoliciesareconsistentwithCouncil’slong,medium andshort-termplanningoutcomesandsomewilldirectly supportthedelivery oftheCouncil’sCommunity andCorporatePlans.

AserviceisagroupofactivitiesprovidedtotheCitye.g.,wastecollection whichmanagesarangeofdifferentwastecollectiontypes.

INDEX OF TABLES

Table1–2024/25financialposition......................................................................................................................................13

Table2–Councillormeetingattendance2024/25..............................................................................................................31

Table3–Councillorremuneration2024/25.........................................................................................................................32

Table4-Councillorexpenses

Table5–NumberofCouncillorConductcomplaints,notices,referrals,ordersanddisciplinaryactions..................34

Table6–CommunityassistanceprovidedbyCouncil........................................................................................................41

Table7–TownsvilleCityGrantsandPartnershipsProgram.............................................................................................42 Table8–Seniormanagementremuneration......................................................................................................................43 Table9–Particularresolutions..............................................................................................................................................43

Table10–AdministrativeActionComplaints.......................................................................................................................46

Table13–Auditandriskcommitteemeetingdatesandpresentationofminutes........................................................52 Table14–Auditcommitteememberships...........................................................................................................................52

INDEX OF REPORTABLE DISCLOSURES

Belowisanindexoftherelevantsectionsofthisreportthatpertaintothestatutoryrequirements* foralocal governmentannualreport:

Act 2009

APPENDIX

GENERAL PURPOSE FINANCIAL STATEMENTS 2024/25

ThefollowingpagescontainTownsvilleCityCouncil’sauditedfinancialstatementsfortheyearended30June 2025.Pleasenotethatpagenumberingrecommencesatpage1forthissection.

Other

Employee

Materials

Finance

Capital

Cash

Receivables

Property,

Contract

Leases Payables

Borrowings

Provisions

of Comprehensive Income for the year ended 30 June 2025

Expenses

The above statement should be read in conjunction with the accompanying notes and material accounting policies. (*) Comparative figures have been restated. Refer to Note 22 for further information

Townsville City Council Statement of Financial Position

as at 30 June 2025

assets

Property, plant and equipment

Right of use assets

Intangible assets

Other assets

Total non-current assets

Assets

7,222,014 19,187 1,620 8,575 7,251,396 7,527,762 79,562 61,209 43,575 2,213 35,181 6,139 227,879 385,462 18,948 34,492 5,743 444,645 672,524 6,855,238 2,530,235 4,325,003 6,855,238 2024 * $'000 31,424 45,181 2,765 52,541 6,477 138,388 6,995,580 19,480 1,460 7,244 7,023,764 7,162,152 86,668 4,201 38,959 2,136 37,760 8,352 178,076 333,423 18,767 33,639 10,692 396,521 574,597 6,587,555 2,326,757 4,260,798 6,587,555

The above statement should be read in conjunction with the accompanying notes and material accounting policies. (*) Comparative figures have been restated. Refer to Note 22 for further information

Townsville City Council

Statement of Changes in Equity

for the year ended 30 June 2025

Balance as at 1 July 2024

Net result

Other comprehensive income for the year - Increase in asset revaluation surplus

Total comprehensive income for the year

Balance as at 30 June 2025

Balance as at 1 July 2023

Prior period adjustment relating to recognition of non-current assets

Restated balance as at 1 July 2023

Net result

Other comprehensive income for the year - Increase in asset revaluation surplus

Total comprehensive income for the year

Balance as at 30 June 2024

2,530,235 4,325,003 6,855,238 1,651,776 4,130,286 5,782,062

2,326,757 4,260,798 6,587,555

The above statement should be read in conjunction with the accompanying notes and material accounting policies. (*) Comparative figures have been restated. Refer to Note 22 for further information

Townsville

City Council

Statement of Cash Flows

for the year ended 30 June 2025

Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees

Interest received

Finance costs

Net cash inflow from operating activities

Cash flows from investing activities

Proceeds from sale of property, plant and equipment

Grants, subsidies, contributions and donations

Net movement in loans and advances

Payments for property, plant and equipment

Payments for intangible assets

Net cash outflow from investing activities

Cash flows from financing activities

Proceeds from borrowings

Repayment of borrowings

Repayments made on leases (principal only)

Net cash inflow (outflow) from financing activities

Net increase (decrease) in cash and cash equivalents held

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

21 9

2025 $'000 573,464 (408,491) 3,552 (16,404) 152,121 1,692 127,978 (178,063) (1,193) (49,586) 94,952 (38,297) (2,964) 53,691 156,226 31,424 187,650 2024 $'000 517,758 (399,337) 6,147 (17,851) 106,717 409 115,302 300 (271,606) 3,585 (152,010) (46,175) (3,290) (49,465) (94,758) 126,182 31,424

The above statement should be read in conjunction with the accompanying notes and material accounting policies.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 1. Information about these financial statements

(a) Basis of preparation

These general purpose financial statements are for the period 1 July 2024 to 30 June 2025. They are prepared in accordance with the requirements of the Local Government Act 2009 and the Local Government Regulation 2012.

Council is a not-for-profit entity for financial reporting purposes and these financial statements comply with Australian Accounting Standards and Interpretations as applicable to not-for-profit entities.

These financial statements have been prepared under the historical cost convention except for the revaluation of certain classes of property, plant and equipment.

(b) The local government reporting entity

Townsville City Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia.

As at 30 June 2025, Council was party to the following joint ventures and controlled entity:

• Townsville Breakwater Entertainment Centre Limited;

• NQ Spark Pty Ltd; and

• North Rail Yard Developments Pty Ltd.

Council has a 79.8% ownership interest in an unincorporated joint venture known as the Townsville Breakwater Entertainment Centre. This joint venture exists between Breakwater Island Limited as trustee of the Breakwater Island Trust and the Townsville City Council. Council impaired its investment in the joint venture to nil in 2017/18.

Pursuant to the terms of the management agreement, Townsville City Council provides a capped operating cost contribution fee each financial year, and Breakwater Island Limited indemnifies the joint venture from any amount by which defined costs exceed total revenue. All contributions are recorded in the Statement of Comprehensive Income.

Council has a 50% ownership interest in NQ Spark Pty Ltd, which is responsible for the establishment of an advanced environmental simulation facility in Townsville. The joint venture exists between James Cook University and Townsville City Council. Profit from operations for the current year has not been included in Council's financial statements as the amount is not material.

Council is the controlling entity of North Rail Yard Developments Pty Ltd and holds a 100% shareholding. This entity has not been consolidated at 30 June 2025 as its size and nature is not material to Council's operations. Profit from operations for the current year has not been included in Council's financial statements as the amount is not material.

(c) Rounding and Comparatives

The financial statements are in Australian dollars that have been rounded to the nearest thousand $1,000 or, where that amount is $500 or less, to zero, unless otherwise stated.

Comparative information is generally restated for reclassifications, errors and changes in accounting policies unless permitted otherwise by transition rules in a new Accounting Standard.

Notes

to the

Financial Statements

for the year ended 30 June 2025

Note 1. Information about these financial statements (continued)

(d) Estimates and Judgements

Council makes a number of judgements, estimates and assumptions in preparing these financial statements. These are based on the best information available to Council at the time, however due to the passage of time, these assumptions may change and therefore the recorded balances may not reflect the final outcomes. The significant judgements, estimates and assumptions relate to the following items and specific information is provided in the relevant note:

• Revenue recognition (Note 3)

• Valuation of property, plant and equipment including useful life assessments, fair value and impairment (Note 11)

• Measurement and recognition of provisions (Note 16)

• Measurement and recognition of the impairment of trade receivables (Note 24)

(e) Taxation

Council is exempt from income tax, however Council is subject to Fringe Benefits Tax, Goods and Services Tax (GST) and Payroll Tax on certain activities. The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively.

(f) Standards issued by the AASB not yet effective

The AASB has issued Australian Accounting Standards and Interpretations which are not mandatorily effective at 30 June 2025. Those standards have not been adopted by Council and will be included in the financial statements on their effective date. Council has assessed all the standards which are not yet effective and have determined that there is no expected material impact on the reported financial position or performance.

(g) New and revised Accounting Standards adopted during the year

Townsville Council adopted all standards which became mandatorily effective for annual reporting periods beginning on 1 July 2024, none of the standards had a material impact on the reported position, performance and cash flows.

The relevant standards for Council were:

i) AASB 101 Presentation of Financial Statements (amended by AASB 2020-1, AASB 2020-6, AASB 2022-6, AASB 2023-3) relating to current/ non-current classification of liabilities.

ii) AASB 13 Fair Value Measurement (amended by AASB 2022-10).

(h) Volunteer Services

Volunteer services have not been recognised in the Statement of Comprehensive Income because Council would not purchase these services had they not been donated, and the value cannot be reliably measured.

Notes to the Financial Statements

for the year ended 30 June 2025

Note 2. Analysis of results by function

(a) Components of Council's functions

The activities relating to Council's components reported in Note 2(b) are as follows:

(i) Cultural and community services

Maintain and grow events, arts, sport and cultural services to improve the liveability of Townsville. Develop and support cultural and community experiences in Townsville and maintain public and environmental health. Includes community support, community facilities, libraries, visual and performing arts, events and enforcement compliance.

(ii) Drain and stormwater management

Manage drain and stormwater infrastructure.

(iii) Environment and sustainability services

Support environmental sustainability, natural hazard and resource management and foster sustainable management of our environment. Increase natural landscape resilience of creeks, riverbanks, coastal shorelines, wetlands, forests and tropical savannas through rehabilitation, stabilisation and restoration.

(iv) Parks and open space management

Manage a diverse network of parks, open spaces, coastal and recreational facilities.

(v) Planning and development

Provide a strategic approach to long-term planning and policy development ensuring that Townsville manages natural hazards, growth and promotes economic development while protecting and conserving our natural resources and heritage. A key part of the land use strategy is ensuring the city develops within the urban growth corridors to provide more efficient performing infrastructure.

(vi) Roads and transport management

Provide a reliable and efficient transport network considering future transport needs whilst encouraging active travel methods.

(vii) Service partners

Provide a wide range of professional services, policy implementation and advice to both internal and external customers. Enable delivery of Council's strategic and operational priorities within legislated requirements and good governance practices, through business systems and structures.

(viii) Water services

Water Services is a significant business activity of Townsville City Council, providing potable water and recycled water.

(ix) Wastewater services

Wastewater Services is a significant business activity of Townsville City Council and collects and treats wastewater for disposal or reuse.

(x) Resource recovery

Resource Recovery is a significant business activity of Townsville City Council, providing waste management, recycling and resource recovery services.

Components grouped by entity

Council has identified its operating components and grouped them by entity based on the internal reports that are reviewed and used by management in assessing performance and in determining the allocation of resources and assets.

The components above are grouped into the following entities and reported in Note 2(b): (i) to (vii) Council Functions; (viii) to (ix) Townsville Water; and (x) Resource Recovery

Townsville City Council

Notes

to the Financial Statements for the year ended 30 June 2025

Note 2. Analysis of results by function (continued)

(b) Income, expenses and assets attributed to Council functions

Townsville

City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 3. Revenue

(a) Rates, levies and charges

Rates, levies and charges are recognised as revenue at the beginning of the rating period to which they relate. Prepaid rates are recognised as a financial liability until the beginning of the rating period.

General rates

Water and wastewater utility charges

Refuse and recycling utility charges

Less: discounts

Less: pensioner and other remissions

Total rates, levies and charges

(b) Fees and charges

(12,212) 442,336 199,650 203,830 27,662 431,142 (12,754) (11,557) 406,831

Revenue arising from fees and charges is recognised at the point in time when a performance obligation is completed and the customer receives the benefit of the goods or services being provided. This is generally on receipt or issuing of an invoice.

Licences and animal registrations granted by Council are recognised at the time of issue rather than over the term of the licence and registration period.

Revenue from infringements is recognised on issue of the infringement notice. Unpaid infringement notices are sent to an external collection agency for recovery and revenue is written off at that point. Subsequent recoveries are recognised as income on receipt.

Refuse fees

Regulatory assessment fees

Commercial fees

Licences and registrations

Infringements

Other fees and charges

Total fees and charges

(c) Grants, subsidies, contributions and donations

Grant revenue under AASB 15

Where grant revenue arises from an agreement which is enforceable and contains sufficiently specific performance obligations, revenue is recognised when control of each performance obligation is satisfied.

Each performance obligation is considered to ensure the revenue recognition reflects the transfer of control. Control may transfer at a point in time or continuously over the life of the agreement. Where control is transferred over time, costs incurred are used to reflect the transfer of the benefit. Otherwise revenue is recognised at the point of completion of a milestone within the terms of the agreement.

Townsville City Council

Notes

to the Financial Statements for the year ended 30 June 2025

Note 3. Revenue (continued)

Grant revenue under AASB 1058

Contributions received for capital purposes

Where assets are donated or purchased for significantly below fair value, the revenue is recognised when the asset is acquired and controlled by Council. Revenue is generally recognised on receipt of the asset as there are no enforceable performance obligations.

Donated assets

Physical assets contributed to Council by developers in lieu of cash contributions are recognised as revenue when Council obtains control of the assets and fair value can be reliably measured. Non-cash contributions with a value in excess of Council's recognition threshold are recognised as a non-current asset. Those below the threshold are recorded as an expense.

Grants received for capital purposes

Grants received from an enforceable agreement to acquire or construct property, plant and equipment to an identified specification under Council's control, are recognised as revenue when the obligation to construct or purchase is complete.

For construction projects, revenue is recognised as costs are incurred.

{i) Operating

Capital revenue includes grants and subsidies received which are tied to specific projects for the replacement or upgrade of existing non-current assets and/or investment in new assets. It also includes non-cash contributions which are usually infrastructure assets received from developers.

Contributions received for capital purposes

Donated assets

Grants received for capital purposes

Total capital grants, subsidies, contributions and

{iii) Timing of revenue recognition for grants, subsidies, contributions and donations

Townsville City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 4. Other income

Rental income

Private works revenue

Laboratory service revenue

Recovery of expenses

Legal recoveries

Sale of scrap

Other revenue

Total other income

Note 5. Employee and councillor costs

Employee benefit expenses are recorded when the service has been provided by the employee.

Townsville City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 6. Materials and services

Accommodation services

Administration supplies and consumables

Audit of annual financial statements by the Auditor-General of Queensland

Bulk water supply

Contractors and service providers

Electricity

Employee related costs

Equipment and tools

Information, technology and communications

Insurance

Marketing and promotion

Other utilities

Repairs, maintenance and construction

Vehicle and plant operating costs

State waste levy payment

Waste levy rebate •

Other

and services

(*) The State Government provided a rebate of $6,707,820 (2024: $6,496,496) to mitigate the direct impacts of the state waste levy on households.

Note 7. Finance costs

Finance costs charged by the Queensland Treasury Corporation

Unwinding of discount on landfill restoration provision

Impairment of receivables

Interest on leases

Total finance costs

Note 8. Capital expenses

Loss on sale/disposal of property, plant and equipment

Reversal of impairment - intangible assets

Revaluation decrement of property, plant and equipment

Other capital expenses Total capital expenses

(1,582) 12,029 224 25,980

Townsville City Council

Notes

to the Financial Statements for the year ended 30 June 2025

Note 9. Cash and cash equivalents

Cash and cash equivalents in the statement of cash flows include cash on hand, all cash and cheques receipted but not banked at the year end and deposits held at call with financial institutions.

Council's cash and cash equivalents are subject to a number of external restrictions that limit amounts available for discretionary or future use. These include:

(i) Externally imposed expenditure restrictions at the reporting date relate to the following cash assets:

Unspent government grants

State Waste Levy

Unspent loan monies

(ii) Internal allocations of cash at the reporting date: Funds set aside by Council for future works

Internal allocations of cash may be changed by Council with a resolution.

In accordance with the Local Government Act 2009 and the Local Government Regulation 2012, a separate trust bank account and separate accounting records are maintained for funds held on behalf of outside parties. Council performs only a custodial role in respect of these monies. As these funds cannot be used by Council, they are not brought to account in these financial statements since Council has no control over the assets.

Trust funds held for outside parties

Monies collected or held on behalf of other entities yet to be paid out

Townsville City Council Mayor's Christmas Tree Appeal

13

Townsville City Council

Notes

to the

Financial

Statements for the year ended 30 June 2025

Note 10. Receivables

Receivables are recognised at the amounts due at the time of sale or service delivery (i.e. the agreed purchase price/contact price). Settlement of these amounts is required within 30 days from the invoice date.

Debts are regularly assessed for collectability and an allowance is made for impairment where appropriate. All known bad debts were written off at 30 June 2025. Subsequent recoveries of amounts previously written off are recognised as income.

Council has the power to sell an owner's property to recover outstanding rate receivables, therefore in accordance with the Local Government Act 2009, rate receivables are not impaired unless the expected recovery value is less than outstanding arrears.

Physical assets contributed to Council by developers are recognised as receivables when Council obtains control of the assets and fair value can be reliably measured.

Loss allowance

Interest is charged on outstanding rates and utilities at 12.35% per annum from 1 July 2024. No interest is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtor receivables.

Notes

to the Financial Statements for the year ended 30 June 2025

Note 11. Property, plant and equipment

Notes

to the Financial Statements for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

Notes

to the Financial Statements for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

(a) Recognition

Property, plant and equipment with a total value of less than $5,000 and items of land with a total value less than $1 are treated as an expense in the period of acquisition. All other items of property, plant and equipment are recognised as assets. Individual assets valued below the asset recognition threshold of $5,000, are recognised as an asset if connected to a larger network. For example, parks, including all the various components, are recognised as a network asset.

Land under roads and reserve land under the Land Act 1994 or Land Title Act 1994 is controlled by Queensland State Government and not recognised in Council's financial statements.

(b) Measurement

Property, plant and equipment assets are initially recorded at cost. Subsequently, each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss.

Cost is determined as the fair value of consideration plus costs incidental to the acquisition.

Direct labour, materials and an appropriate portion of overheads incurred in the acquisition or construction of assets are also included as capital costs.

Property, plant and equipment received in the form of contributions, for significantly less than fair value or as offsets to infrastructure charges, are recognised as assets and revenue at fair value.

When Council raises a provision for the restoration of a Council-controlled site, such as a landfill site, the provision is initially recognised against property, plant and equipment. Subsequent changes in the amount of economic outflow or a change in the discount rate is reflected in the Statement of Financial Position for all open landfills. Increases in landfill provisions for closed landfills are recognised in the Statement of Comprehensive Income to the extent they exceed the revaluation surplus.

(c) Depreciation

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and commissioned ready for use, at which time they are reclassified from work in progress to the appropriate property, plant and equipment class.

Land, work in progress, certain cultural and heritage assets with heritage listing, road formations and formation works associated with the construction of dams, levee banks and reservoirs are not depreciated. Depreciation on other property, plant and equipment assets is calculated on a straight-line basis such that the cost of the asset less its residual value is recognised progressively over its estimated useful life to Council. Management believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets.

Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset. Where expenditure extends the life of an asset, the expenditure is capitalised and the asset's life is revised.

Depreciation methods, estimated useful lives and residual values are reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. Factors used in estimating the useful lives of assets at each reporting date include the condition assessments performed as part of the annual valuation process for assets measured at current replacement cost (CRC), manufacturer specifications, maintenance history, analysis of an asset class, and any other relevant evidence.

Notes

to

the Financial Statements

for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

(d) Impairment

Property, plant and equipment held at cost is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

(e) Valuation

Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally qualified valuers every 5 years to determine the fair value for each class of property, plant and equipment assets. Valuations are undertaken in accordance with AASB 116 Property, Plant and Equipment, Local Government Regulation 2012 and Council policy.

In the intervening years, Council will internally assess, through physical inspection, the condition of infrastructure assets on a sample basis and as part of the maintenance process. The inspection results are considered in combination with indices provided by independent valuers. Together these elements are used to form the basis of a management valuation for infrastructure asset classes at balance date.

Revaluation increases are recognised in the asset revaluation surplus unless they are reversing a previous decrease which was recorded in the Statement of Comprehensive Income. In that case the increase is recorded in the Statement of Comprehensive Income to the extent of the previous decrease. Revaluation decreases are recognised in the asset revaluation surplus, where there are sufficient amounts available in the asset revaluation surplus relating to that asset class. Where the surplus does not have sufficient amounts available, the decrease is recognised in the Statement of Comprehensive Income. Where the class of asset has previously decreased in value and this reduction was recognised as an expense, an increase in the value of the class is recognised in the Statement of Comprehensive Income.

Fair values are classified into three levels as follows:

Level 1: fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: fair value based on inputs that are directly or indirectly observable for the asset or liability.

Level 3: fair value based on unobservable inputs for the asset or liability.

There were no transfers between levels 1 and 2 during the year.

There were no transfers between level 2 to level 3 during the year.

Council's policy is to recognise transfers in and out of the fair value hierarchy levels at the end of the reporting period.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

(f) Valuation techniques used to derive level 2 and level 3 fair values

Asset class and fair value hierarchy

Buildings (level 2)

2025: $34,430,000

2024: $30,068,000

Buildings (level 3)

2025: $249,012,000

2024: $247,620,000

30/06/2024

Valuer engaged

Knight Frank (Adam Reguson CPV No. 2215)

Cultural and heritage (level 2)

01/03/2023

APV Valuers & Asset Management (Daniel Atherton R.E. & Dev Registered Valuer No. 2962; RICS Registered Valuer NO:1169941)

Ross Searle and Associates (Ross Searle BA Uni. Qld Mlitt JCU valuer approved by the Office of the Arts for the Commonwealth Gifts Program)

Dams and weirs, and fixed plant (level 3)

30/06/2024

Northern Water Management Pty Ltd (Jeff Ballard RPEQ No. 6854)

and estimates {related data sources) assessment

Significant inputs include estimated net rental per No change has been made to square metre and associated capitalisation rate, asset values. valued at the highest and best use. Other inputs include sale prices of comparable properties adjusted for differences in key attributes such as property size.

These buildings are deemed of specialist nature with No change has been made to no active market or are situated on reserve land. The asset values. condition of these buildings considers both physical characteristics as well as holistic factors such as functionality, capability, utilisation, and obsolescence.

For artwork assets valued for financial reporting, key No change has been made to considerations include whether an asset is able to asset values. transact within an identified market, either the local or international art market, or whether it is more appropriately considered in terms of cost of replacement; and whether an individual collection object reaches its highest and best value when considered as part of a collection or as an individual object. Restrictions may limit the highest and best use that can be applied, particularly in the case of Australian legislation including sensitive Collection Assets.

The valuation process incorporates the determination No change has been made to of unit rates by reference to data contained in asset values. Rawlinson's Construction Cost Guide (Rawlinson's), an assessment of Council's internal and external costings, manufacturer's specifications, and other relevant data.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

Asset class and fair value hierarchy

Land (level 2)

Land improvements (level 3)

replacement cost

Pipe networks - water, Current wastewater, and stormwater (level replacement 3) cost

30/06/2022

Valuer engaged

Knight Frank (Adam Reguson CPV No. 2215)

Transport network - sealed roads (level 3)

30/06/2023

replacement cost

GHD (S. Orr RPEQ No. 13649)

Key assumptions and estimates {related data sources)

Sales prices of comparable land sites in proximity are adjusted for differences in key attributes, such as property size. The most significant inputs into this valuation approach are price per square metre. Land is valued for its highest and best use. Reserve land held by Council as trustee for the Queensland Government is not valued.

Industry standard cost guides, project costs from recently completed projects, manufacturer's specifications and other data. There is a substantial number of low value assets within this class, sampling methods were applied to determine those asset values.

Water and wastewater network - Northern Water Management Pty Ltd (Jeff Ballard RPEQ No. 6854)

Stormwater networkLemmah Pty Ltd (Graham John Jordan RPEQ No. 3305).

Unit rates -Lemmah Pty Ltd (Graham John Jordan RPEQ No. 3305). Rates only.

Condition Assessment - Pavement Management Service Pty Ltd

Valuation is performed by application of standardised unit rates. Rates are determined by usage, material, depth, length and size. Secondary factors include ground conditions, construction cost indexes such as Rawlinson's, manufacturer specifications, local contractor cost data and current best practice. Limitations on access to individual pipes caused by location or methodology are not incorporated into standardised rates.

Valuation for roads is performed by application of standardised unit rates. All road sections are componentised into formation, pavement sub-base, pavement base, surface, kerbs, barriers, road furniture and pathways. It is assumed that design and construction is to the same standard and uses a consistent amount of labour and materials across each section. Environmental factors such as soil type, climate and topography are assumed to be consistent across each section. Condition assessment conforms to AustRoads technical network assessment papers 2011-2018.

Current year fair value assessment

No change has been made to asset values.

No change has been made to asset values.

Fair value changed as per index review performed by Management.

No change has been made to asset values.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 11. Property, plant and equipment (continued)

Asset class and fair value hierarchy

Transport network - excluding sealed roads and bridges (level 3)

30/06/2024

Transport network - bridges (level 3)

30/06/2023

Valuer engaged

Lemmah Pty Ltd

(Graham John Jordan RPEQ No. 3305)

Stantec (Stephen Walker RPEQ)

Key assumptions and estimates {related data sources)

Valuation for transport network assets is performed by the application of standardised unit rates and indexes. Transport network, other than sealed roads and bridges, includes asset group types such as footpaths, kerbs, parking meters, guardrails, road shoulder segments, boat ramps, bus stops, road furniture, medians, roundabouts, switchboards, street lighting and traffic signals.

It is assumed that design and construction is the same standard and uses a consistent amount of labour and materials across each section. Environmental factors such as soil type, climate and topography are assumed to be consistent across each section.

Condition assessment is undertaken as part of the revaluation for the purpose of assessing remaining useful life for depreciation purposes. Condition assessment is performed in-house by suitably experienced and knowledgeable Council staff following corporate guidelines.

Valuation for bridges is performed by application of standardised unit rates, including Stantec unit rate database, Rawlinson's Australian Construction Handbook, supplier quotations, and published indices such as the road and bridge construction index and asset revaluation index for engineering construction.

Current year fair value assessment

No change has been made to asset values.

No change has been made to asset values.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 12. Contract balances

Where amounts billed to a customer are based on the achievement of various milestones established in the contract, the amounts recognised as revenue in a given period do not necessarily coincide with the amounts billed to or certified by the grantor.

When a performance obligation is satisfied by transferring a promised good or service to the customer or the community before payment is due, Council presents the work in progress as a contract asset, unless the rights to that amount of consideration are unconditional, in which Council recognises a receivable.

Where capital grant funding is received in advance to construct a Council controlled asset, the funds are recorded as a contract liability and revenue is recognised as Council constructs the asset (work in progress).

(a) Contract assets

Duplication of the Riverway Drive Trunk Watermain Local Roads and Community Infrastructure

Lansdown Eco-Industrial Precinct Upgrade

Haughton Pipeline Duplication Project Stage 2

Works for Queensland

Other

Total contract assets

(b) Contract liabilities

Northern Beaches Trunk Road Infrastructure

Haughton Pipeline Duplication Project Stage 2

Works for Queensland

Lansdown Eco-Industrial Precinct Upgrade

Disaster Recovery Funding Arrangements

North Queensland Resilience Program

Blackspot Funding

Cycle Network Local Government

Other

Total contract liabilities

Note 13. Leases

Council as a lessee

15,448 10,584 6,083 2,415 1,266 884 892 61,209 2024 $'000 9,075 3,715 3,239 35,076 1,061 375 52,541 2,574 611 725 291 4,201

Where Council identifies a lease greater than 12 months and greater than $5,000 including buildings and plant and equipment, a right-of-use asset and lease liability is recognised on the inception of the lease. Council separates lease and non-lease components for classes of assets and has accounted for lease payments as either a reduction of lease liability or as maintenance costs.

For low value or short-term leases, Council recognises the payment associated with these leases as an expense on a straight-line basis over the lease term.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 13. Leases (continued)

The right-of-use asset is measured using the cost model where cost on initial recognition comprises: the lease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration, less any lease incentives received. The right-of-use asset is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the impairment of asset accounting policy.

The lease liability is initially recognised at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined, Council's incremental borrowing rate for a similar term with similar security is used.

Terms and conditions of leases

Buildings

Several properties are leased including two properties for community purposes (Townsville City), one library (Townsville City) and five operational facilities (Mount St John). The lease terms range between 1 and 15 years and are subject to annual increases of either CPI or a fixed rate.

Lease Liabilities

The table below shows the maturity analysis of the lease liabilities based on contractual cashflows and therefore the amounts will not be the same as the recognised lease liability in the statement of financial position.

Liabilities not recognised

For building leases, Council includes extension options which can be exercised at Council's discretion. At each reporting date Council assesses whether it is reasonably certain that the extension options will be exercised based on current operations and Council strategy. An extension option has been included in the lease liability for one property used for operational purposes.

Townsville City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 13. Leases (continued)

There are $515,459 in future lease payments which are not included in the lease liability as the lease which Council is committed to, has not yet commenced.

Amounts included in the statement of comprehensive income related to leases

The following amounts have been recognised in the statement of comprehensive income for leases where Council is the lessee.

Leases at significantly below market value - concessionary/ peppercorn leases Council has a number of leases, pursuant to Deeds of Grant in Trust, at significantly below market value which are used for community and sporting purposes.

The leases are generally between 10 and 30 years and require payments of between $150 and $12,205 per annum. The use of the right-of-use asset is restricted by the lessors to specified community services which Council must provide.

Council does not believe that any of the leases in place are individually material.

Note 14. Payables

Payables are recognised when goods or services are received, at the amount owed. Amounts owing are unsecured and are generally settled on 30-day terms.

Notes to the Financial Statements

for the year ended 30 June 2025

Note 15.

Borrowings

Borrowings are initially recognised at fair value. Subsequent to initial recognition these liabilities are measured at amortised cost.

Principal and interest repayments are made quarterly in arrears. Expected final repayment dates vary from 15 June 2027 to 15 June 2045. There have been no defaults or breaches of the loan agreement during the period.

Council's current policy is to only borrow for capital investment purposes and for a term no longer than the expected life of the asset.

The loan market value at the reporting date was $422,333,197. This represents the value of the loans if Council repaid the loans as at reporting date. As it is the intention of Council to hold the debt for its term, no provision is required to be made in these financial statements.

No assets have been pledged as security by Council for any liabilities, however all loans are guaranteed by the Queensland Government.

The interest rates on borrowings range from 1.385% to 7.684% for book value rates.

Note 16. Provisions

Annual leave

Amounts expected to be settled within 12 months are calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. Amounts not expected to be settled within 12 months are calculated on the same basis and are discounted to present value.

As Council does not have an unconditional right to defer this liability beyond 12 months, annual leave is classified as a current liability.

Long service leave

The provision for long service leave represents the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The liability is calculated using current pay rates and projected future increases in those rates and includes related employee oncosts. The estimates are adjusted for the probability of the employee remaining in Council's employment or other associated employment which would result in Council being required to meet the liability. Estimates are then discounted to present value using interest rates attaching to Commonwealth Government guaranteed securities at the reporting date.

Where employees have met the prerequisite length of service and Council does not have an unconditional right to defer this liability beyond 12 months, long service leave is classified as a current liability. Otherwise it is classified as non-current.

Townsville City Council

Notes to the Financial Statements

for the year ended 30 June 2025

Note 16. Provisions (continued)

Landfill restoration

A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is probable Council will be liable, or required, to incur costs on the cessation of use of these facilities.

The provision represents the present value of the anticipated future costs associated with the closure of landfill sites in accordance with environmental licence conditions. The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates in line with Townsville 2025-2029 Corporate Plan, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred. The provision recognised for landfill sites is reviewed at least annually and updated based on the facts and circumstances available at the time.

The total projected cost of $29,424,369 is expected to be incurred between 2026 and 2073. This amount excludes rehabilitating landfill cells on existing sites that are yet to be constructed or used, but which are in the current site plan.

Environmental offset area management Council has an obligation under the Haughton Pipeline Stage 2 Offset Area Management Plan to undertake environmental management activities to address impacts on Matters of National Environmental Significance (MNES). These activities include fire management, weed control, revegetation and regeneration, pest management, endangered species monitoring, and other compliance-related actions.

At reporting date, no provision has been recognised in relation to this obligation, as the requirements of AASB 137 Provisions, Contingent Liabilities and Contingent Assets for recognition have not been met. Specifically, while an obligation exists, the amount of the future expenditure cannot be measured with sufficient reliability.

Townsville City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 16. Provisions (continued)

Details of movements in provisions

Self insurance

Balance at beginning of financial year

Additional provision

Amounts used

Balance at end of financial year

Landfill restoration

Balance at beginning of financial year

Additional provision

Amounts used

Increase/ (decrease) in provision due to unwinding of discount

Increase/(decrease) in provision due to change in discount rate

Balance at end of financial year

2,458 35,947 4,484 (8,780) 1,579 454 33,684

Townsville

City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 17. Asset revaluation surplus

The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in the asset revaluation surplus. Increases and decreases on revaluation are offset within a class of assets.

Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense.

When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the asset revaluation surplus and not transferred to retained surplus.

Balance at end of the year

Note 18. Commitments for expenditure

Commitment

the

Upgrades Information technology upgrades

Ross River Dam to Douglas Water Treatment Plant Pipeline Duplication Other Resource Recovery and Waste Disposal

Operational Buildings and Depots

Cleveland Bay Purification Plant Effluent Reuse Project

Open Space Upgrades

Douglas Water Treatment Plant Clarifier Total commitments

174,377

Notes to the Financial Statements

for the year ended 30 June 2025

Note 19. Contingent liabilities

Estimates of the potential financial effect of contingent liabilities that may become payable:

Workers' compensation self-insurance guarantees

Haughton Pipeline Duplication project guarantees Total contingent liabilities

WorkCover Queensland authorities require guarantees against workers' compensation self-insurance liabilities. The guarantee is based on independent actuarial advice of the estimated liability. An actuarial assessment of the Council workers' compensation claims liability performed on 28 August 2025 has estimated the required self-insurance guarantee be $4,972,000. Guarantees held at each balance date do not always equal the liability at these dates. This is due to delays in issuing the guarantees or Council opting to maintain the existing guarantee amount.

The actuarial assessment also recommends a self-insurance provision that has been recognised for risks relating to potential workers' compensation claims at balance date. Refer to Note 16.

Council holds two bank guarantees to provide security over costs associated with the Haughton Pipeline Duplication project.

Claims

Council is a member of the local government mutual self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises.

At the time of preparation of this report, the financial statements for 30 June 2025 of LGM Queensland were not available. As at 30 June 2024 the financial statements reported an accumulated surplus of $72,144,102 and it was not anticipated any liability would arise.

Notes to the Financial Statements

for the year ended 30 June 2025

Note 20. Superannuation

Council contributes to the Brighter Super Regional Defined Benefits Fund (the scheme), at the rate of 12% for each standard permanent employee who is a defined benefit member. This rate is set in accordance with the Brighter Super trust deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009. The scheme is managed by the Brighter Super trustee.

The scheme is a pooled defined benefit plan and it is not in accordance with the deed to allocate obligations, plan assets and costs at the Council level.

Any amount by which the scheme is over or under funded may affect future contribution rate obligations but has not been recognised as an asset or liability of Council.

Council may be liable to the scheme for a portion of another local governments' obligations should that local government be unable to meet them. However, the risk of this occurring is extremely low and in accordance with the Brighter Super trust deed, changes to Council's obligations will only be made on the advice of an actuary.

The last completed triennial actuarial assessment of the scheme as required under Superannuation Prudential Standard 160 was undertaken as at 1 July 2024. The actuary indicated that "At the valuation date of 1 July 2024, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory financial position." The measure of vested benefits represents the value of benefit entitlements should all participating employees voluntarily exit the scheme. Council is not aware of any events since that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date.

No changes have been made to prescribed employer contributions which remain at 12% of employee salary or wages and there are no known requirements to change the rate of contributions.

The next triennial actuarial review is due on 1 July 2027.

The most significant risks that may result in Brighter Super increasing the contribution rate, on the advice of the actuary, are:

Investment risk - the risk that the scheme's investment returns will be lower than assumed and additional contributions will be needed to fund the shortfall.

Salary growth risk - the risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded.

Notes to the Financial Statements for the year ended 30 June 2025

Note 21. Reconciliation of net result for the year to net cash inflow ( outflow) from operating activities

Net result

Non-cash, investing and financing items

Depreciation and amortisation

Revaluation decrement of property, plant and equipment

Reversal of previous impairment losses of intangibles

Change in future rehabilitation and restoration costs

Lease interest on right-of-use assets

Net (profit)/loss on sale of assets

Grants and contributions received for constructing assets

Share of net (profits)/losses of equity accounted investments

Changes in operating assets and liabilities:

(Increase)/decrease in receivables

(Increase)/decrease in inventories

(Increase)/decrease in contract assets (Increase)/decrease in other assets

Increase/(decrease) in payables

Increase/(decrease) in contract liabilities

Increase/(decrease) in provisions

Increase/(decrease) in other liabilities

Net cash flows from operating activities

(2,598) (7,329) 152,121

Restated $'000 96,891 150,672 12,029 (1,582) (9,747) 806 15,309 (145,928) (611) 6,684 1,157 (19,667) (1,880) 26,861 (17,303) (2,212) (4,762) 106,717

Notes to the Financial Statements

for the year ended 30 June 2025

Note 22. Prior period adjustments

Contributed Infrastructure Assets

During 2024/25 Council identified contributed infrastructure assets totalling $26,650,625 with prior year commission dates resulting in an understatement of revenue and property, plant and equipment in 2023/24.

In addition, $41,085,836 of contributed infrastructure assets were identified during 2024/25 with commission dates being prior to 1 July 2023. This amount should have been recognised in years prior to 2023/24.

Depreciation in relation to assets commissioned with prior year commission dates was also adjusted. Total depreciation adjustment of $10,547,786 was identified with the amount of $3,082,721 relating to 2023/24 and $7,465,065 relating to assets with commission dates prior to 1 July 2023.

To correct the impact of the prior year errors Council has adjusted the 2023/24 comparative amounts in the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and applicable notes to the financial statements.

Adjustments impacting financial statement line items for the 2023/24 comparative year are presented below:

Statement of Comprehensive Income (Extract)

Capital Revenue

Grants, subsidies, contributions and donations

Total capital income

Total income

Recurrent expenses

Depreciation and amortisation

- Property, plant and equipment

Total recurrent expenses

Total expenses

Net Result

Total comprehensive income for the year

Statement of Financial Position (Extract)

Non-current assets

Property, plant and equipment

Total non-current assets

Total assets

Net community assets

Community equity

Retained surplus

Total community equity

Statement of Changes in Equity (Extract)

Prior period adjustment for recognition of non-current

6,938,391 6,966,575 7,104,963 6,530,366 4,203,609 6,530,366

661,323 145,583 538,676 564,432 96,891 771,872 6,995,580 7,023,764 7,162,152 6,587,555 4,260,798 6,587,555 33,621 96,891 4,260,798

Notes to the Financial Statements

for the year ended 30 June 2025

Note 23. Events after the reporting period

On 26 September 2025, the suspended Mayor of Townsville City Council, Troy Thompson, formally resigned, effective immediately. In accordance with Sections 163 and 164 of the Local Government Act 2009, a byelection is required to be held within two months of the vacancy. The by-election is set for 15 November 2025.

Note 24. Financial instruments and financial risk management

(a) Financial assets and financial liabilities

Council has categorised and measured the financial assets and financial liabilities held at balance date as follows:

Financial assets

Cash and cash equivalents

Receivables - measured at amortised cost

Financial liabilities

Payables - measured at amortised cost

Borrowings - measured at amortised cost

Financial assets and financial liabilities are presented separately, offsetting has not been applied.

(b) Financial risk management

Council's activities expose it to a variety of risks including credit risk, liquidity risk and market risk. Exposure to financial risks is managed in accordance with Council approved policies on financial risk management. These policies focus on managing the volatility of financial markets and seek to minimise potential adverse effects on the financial performance of Council. These methods include sensitivity analysis in the case of market risk, ageing analysis for credit risk and short term investment strategies to ensure sufficient funds are available to meet short term liquidity requirements.

(c) Credit risk

Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These obligations arise principally from Council's receivables from customers.

Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment obligations. The carrying amount of financial assets represents the maximum credit exposure. Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk.

Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or similar State/Commonwealth bodies or financial institutions in Australia, in line with the Statutory Bodies Financial Arrangements Act 1982.

Council has no significant concentration of credit risk with respect to any single counterparty or entity of counterparties other than those receivables where an allowance for impairment has been specifically provided for.

(d) Liquidity risk

Liquidity risk is the risk that Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC.

Notes to the Financial Statements

for the year ended 30 June 2025

Note 24. Financial instruments and financial risk management (continued)

Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities to cater for unexpected volatility in cash flows. Unrestricted access was available at balance date to undrawn facilities listed below:

Bank overdraft facility

Purchase card facility

Working capital facility - Queensland Treasury Corporation

The following table sets out the liquidity risk of financial liabilities (excluding lease liabilities - refer note 13) held by Council. The amounts disclosed in the maturity analysis represent the contractual undiscounted cashflows at balance date.

2025 Payables

Loans - QTC

2024 Payables Loans - QTC

508,599 86,668 372,382 459,050

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table.

(e) Market risk

Market risk is the risk that changes in market indices, such as interest rates, will affect the Council's income or the value of its holdings of financial instruments.

Interest rate risk

Exposure to interest rate risk arises on investments and borrowings with QTC and other financial institutions in which a future change in interest rates will affect future cash flows. In relation to QTC loans, Council holds fixed rate loan products. Consequently, Council's borrowings are not subject to interest rate risk and therefore no sensitivity analysis is required.

Council does not undertake any hedging of interest rate risk.

Sensitivity analysis of cash balances

Sensitivity analysis depicts what effect a reasonable possible change in interest rates (assumed to be 1%) would have on the profit and equity, based on the carrying values of cash balances at the end of the reporting period. The calculation assumes that the change in interest rates would be held constant over the period. If the rates increased by 1% the impact would be an increase in profit of $1,876,202 (2024: $300,358), an equal amount in the reverse direction is possible for a decrease in rates.

Notes

to the Financial Statements for the year ended 30 June 2025

Note 25. National Competition Policy

Council applies the competitive code of conduct to the following activities: water and sewerage waste management and recycling

This requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity.

The CSO value is determined by Council and represents an activity cost(s) which would not be incurred if the primary objective of the activity was to make a profit. Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSOs by the Council.

The following activity statements are for activities subject to the competitive code of conduct:

Revenue for services provided to the Council

Revenue for Services provided to external clients

Community service obligations

Less: Expenditure Surplus Water and sewerage 2025 $'000 30,360 215,958 3,762 (176,435) 73,645

Description of CSO's provided to business activities:

Activities

Townsville Water

Resource Recovery

CSO description

Concessions on water and waste water utility charges

Concessions on landfill charges, community clean-up events and other waste and recycling services

16,548 56,222

(60,525) 12,621 Actual $'000 3,762 376

Townsville City Council

Notes

to the

Financial Statements

for the year ended 30 June 2025

Note 26. Transactions with related parties

(a) Transactions with Townsville Breakwater Entertainment Centre Joint Venture

Payment of working capital required under management agreement

Capital works funding contribution

Building and property insurance

Other expenditure

(b) Transactions with NQ Spark Pty Ltd

Interests in NQ Spark Pty Ltd is disclosed in Note l{b).

Other revenue received by Council (recovery of expenses)

Materials and other service providers paid by Council Debt forgiven

(c) Transactions with North Rail Yard Developments Pty Ltd

Interests in North Rail Yard Developments Pty Ltd is disclosed in Note l{b).

Funding for operations

Materials and other service providers paid by Council Grant received from Queensland Treasury

Grant from Queensland Treasury paid to North Rail Yard Developments Return of funding for operations

(d) Transactions with key management personnel (KMP)

KMP include the Mayor, Councillors and Council's senior management staff (Chief Executive Officer and directors). The compensation to the KMP for the financial year was as follows:

Short-term employee benefits

Post-employment benefits

Long-term benefits

Termination benefits

(e) Transactions with other related parties

Other related parties include close family members of KMP and any entities controlled or jointly controlled by KMP or their close family members.

Close family members include a spouse, child or dependent of a KMP, child or dependent of a KMP's spouse and any other family member expected to be influenced by a KMP in their dealings with Council.

There were no material transactions between other related parties in the period. There were no KMP family members employed by Council during the financial year.

Townsville City Council

Notes to the Financial Statements for the year ended 30 June 2025

Note 26. Transactions with related parties (continued)

(f) Outstanding balances

Receivables from NQ Spark Pty Ltd

(g) Transactions with related parties that have not been disclosed

There are entities and individuals identified as related parties of Council that also live and operate within the Townsville region. On a regular basis ordinary citizen transactions occur between Council and its related parties. Some examples include:

• Payment of rates

• Use of Council facilities such as swimming pools and libraries

• Dog registration

Council has not included these types of transactions in its disclosure where they are made on the same terms and conditions available to the general public.

General Purpose Financial Statements

for the year ended 30 June 2025

Management Certificate for the year ended 30 June 2025

These General Purpose Financial Statements have been prepared pursuant to sections 176 and 177 of the Local Government Regulation 2012 (the Regulations) and other prescribed requirements.

In accordance with Section 212(5) of the Regulation, we certify that:

i. the prescribed requirements of the Local Government Act 2009 and Local Government Regulations 2012 for the establishment and keeping of accounts have been complied with in all material respects; and

ii. the General Purpose Financial Statements, as set out on pages 2 to 38, present a true and fair view, in accordance with Australian Accounting Standards, of the Council's transactions for the financial year and financial position at the end of the year.

{t_df~ f:;Jf

Acting Mayor Chief Executive Officer

Dated this 30 I h day of October 2025

Dated this JO I '1 day of October 2025

INDEPENDENTAUDITOR’SREPORT

TothecouncillorsofTownsvilleCityCouncil

Reportontheauditofthefinancialreport

Opinion

IhaveauditedthefinancialreportofTownsvilleCityCouncil.

Thefinancialreportcomprisesthestatementoffinancialpositionasat30June2025,the statementofcomprehensiveincome,statementofchangesinequityandstatementofcash flowsfortheyearthenended,notestothefinancialstatementsincludingmaterialaccounting policyinformationandthecertificategivenbytheActingMayorandChiefExecutiveOfficer. Inmyopinion,thefinancialreport:

a)givesatrueandfairviewofthecouncil’sfinancialpositionasat30June2025,andofits financialperformancefortheyearthenended;and

b)complieswiththeLocalGovernmentAct2009,theLocalGovernmentRegulation2012and AustralianAccountingStandards.

Basisforopinion

IconductedmyauditinaccordancewiththeAuditor-GeneralAuditingStandards,which incorporatetheAustralianAuditingStandards.Myresponsibilitiesunderthosestandardsare furtherdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialreportsectionof myreport.

Iamindependentofthecouncilinaccordancewiththeethicalrequirementsofthe AccountingProfessionalandEthicalStandardsBoard’sAPES110CodeofEthicsfor ProfessionalAccountants(includingIndependenceStandards)(theCode)thatarerelevant tomyauditofthefinancialreportinAustralia.Ihavealsofulfilledmyotherethical responsibilitiesinaccordancewiththeCodeandtheAuditor-GeneralAuditingStandards IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovidea basisformyopinion.

Otherinformation

Thecouncillorsareresponsiblefortheotherinformation.

Theotherinformationcomprisestheinformationincludedintheentity’sannualreportforthe yearended30June2025,butdoesnotincludethefinancialreportandourauditor’sreport thereon.

Atthedateofthisauditor’sreport,theavailableotherinformationinTownsvilleCity Council’sannualreportfortheyearended30June2025wasthecurrentyearfinancial sustainabilitystatement,currentyearfinancialsustainabilitystatement-contextualratios (unaudited)andtheunauditedlong-termfinancialsustainabilitystatement.

MyopiniononthefinancialreportdoesnotcovertheotherinformationandaccordinglyIdo notexpressanyformofassuranceconclusionthereon.However,asrequiredbytheLocal GovernmentRegulation2012,Ihaveformedaseparateopiniononthecurrentyearfinancial sustainabilitystatement.

Inconnectionwithmyauditofthefinancialreport,myresponsibilityistoreadtheother informationand,indoingso,considerwhethertheotherinformationismaterially inconsistentwiththefinancialreportandmyknowledgeobtainedintheauditorotherwise appearstobemateriallymisstated.

If,basedontheworkIhaveperformed,Iconcludethatthereisamaterialmisstatementof thisinformation,Iamrequiredtoreportthatfact.Ihavenothingtoreportinthisregard.

Responsibilitiesofthecouncillorsforthefinancialreport

Thecouncillorsareresponsibleforthepreparationofthefinancialreportthatgivesatrue andfairviewinaccordancewiththeLocalGovernmentAct2009,theLocalGovernment Regulation2012andAustralianAccountingStandards,andforsuchinternalcontrolasthe councillorsdetermineisnecessarytoenablethepreparationofthefinancialreportthatis freefrommaterialmisstatement,whetherduetofraudorerror.

Thecouncillorsarealsoresponsibleforassessingthecouncil’sabilitytocontinueasagoing concern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoing concernbasisofaccountingunlessitisintendedtoabolishthecouncilortootherwisecease operationsofthecouncil.

Auditor’sresponsibilitiesfortheauditofthefinancialreport

Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialreportasa wholeisfreefrommaterialmisstatement,whetherduetofraudorerror,andtoissuean auditor’sreportthatincludesmyopinion.Reasonableassuranceisahighlevelof assurance,butisnotaguaranteethatanauditconductedinaccordancewiththeAustralian AuditingStandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatements canarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate, theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenon thebasisofthisfinancialreport.

Afurtherdescriptionofmyresponsibilitiesfortheauditofthefinancialreportislocatedatthe AuditingandAssuranceStandardsBoardwebsiteat: https://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

Thisdescriptionformspartofmyauditor’sreport.

Reportonotherlegalandregulatoryrequirements

Inaccordancewiths.40oftheAuditor-GeneralAct2009,fortheyearended30June2025:

a)IreceivedalltheinformationandexplanationsIrequired

b)Iconsiderthat,theprescribedrequirementsinrelationtotheestablishmentandkeeping ofaccountswerecompliedwithinallmaterialrespects.

Prescribedrequirementsscope

Theprescribedrequirementsfortheestablishmentandkeepingofaccountsarecontainedin theLocalGovernmentAct2009,andtheLocalGovernmentRegulation2012.Theapplicable requirementsincludethoseforkeepingfinancialrecordsthatcorrectlyrecordandexplainthe council’stransactionsandaccountbalancestoenablethepreparationofatrueandfair financialreport.

31October2025

SriNarasimhan QueenslandAuditOffice asdelegateoftheAuditor-General Brisbane

Current-year Financial Sustainability Statement

for the year ended 30 June 2025

Audited ratios

Target Tier 2

Council's performance at 30 June 2025 against key financial ratios and targets.

Actual 2025 5 Yr Av. 2021-25

The current year financial sustainability statement is prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2024. The amounts used to calculate the six reported measures are prepared on an accrual basis and are drawn from Council's audited general purpose financial statements for the year ended 30 June 2025.

Liquidity

1. Unrestricted cash expense coverage ratio >2 months 5.8 months N/A

The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to a council to meet ongoing and emergent financial demands, which is a key component to solvency. It represents the number of months a council can continue operating based on current monthly expenses.

Council's unrestricted cash expense cover ratio is above target.

Operating Performance

2. Operating surplus ratio

The operating surplus ratio is an indicator of the extent to which operating revenues generated cover operational expenses. Any operating surplus would be available for capital funding or other purposes.

Ratio indicates Council has achieved a marginal deficit in its operational result.

3. Operating cash

The operating cash ratio is a measure of council's ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation, and finance costs.

Results are above target indicating Council is generating sufficent cash to fund operating activities.

Asset management

4.

The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council are being replaced as they reach the end of their useful lives.

Ratio reflects deferral of renewal projects to the 2025/26 financial year, primarily resulting from the reallocation of resources to natural disaster recovery efforts.

5.

The asset consumption ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would cost to build a new asset with the same benefit to the community.

Ratio indicates Council's assets are being consumed in line with estimated useful lives.

Debt servicing capacity

6. Leverage ratio times times times

The leverage ratio is an indicator of a council's ability to repay its existing debt. It measures the relative size of the council's debt to its operating performance.

Results have met the target.

Townsvi ll e City Counci l

Certificate of Accuracy (audited ratios) for the year ended 30 June 2025

Certificate of Accuracy (audited ratios)

This current-year financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the Regulation).

In accordance with Section 212(5) of the Regulation we certify that this current year financial sustainability statement has been accurately calculated.

Acting Mayor Chief Executive Officer

Dated this 3 O I h day of October 2025

Dated this 30th day of October 2025

INDEPENDENTAUDITOR’SREPORT

TotheCouncillorsofTownsvilleCityCouncil

ReportontheCurrent-YearFinancialSustainabilityStatement

Opinion

IhaveauditedtheaccompanyingcurrentyearfinancialsustainabilitystatementofTownsville CityCouncilfortheyearended30June2025,comprisingthestatement,explanatorynotes, andthecertificateofaccuracygivenbytheActingMayorandtheChiefExecutiveOfficer.

Inaccordancewiths.212oftheLocalGovernmentRegulation2012,inmyopinion,inall materialrespects,thecurrentyearfinancialsustainabilitystatementofTownsvilleCity Councilfortheyearended30June2025hasbeenaccuratelycalculated.

Basisofopinion

IconductedmyauditinaccordancewiththeAuditor-GeneralAuditingStandards,which incorporatetheAustralianAuditingStandards.Myresponsibilitiesunderthosestandardsare furtherdescribedintheAuditor’sresponsibilitiesfortheauditofthecurrentyearfinancial sustainabilitystatementsectionofmyreport.

Iamindependentofthecouncilinaccordancewiththeethicalrequirementsofthe AccountingProfessionalandEthicalStandardsBoardAPES110CodeofEthicsfor ProfessionalAccountants(includingIndependenceStandards)(theCode)thatarerelevant tomyauditofthestatementinAustralia.Ihavealsofulfilledmyotherethicalresponsibilities inaccordancewiththeCodeandtheAuditor-GeneralAuditingStandards

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovidea basisformyopinion.

Emphasisofmatter–basisofaccounting

IdrawattentiontoNote1whichdescribesthebasisofaccounting.Thecurrentyearfinancial sustainabilitystatementhasbeenpreparedinaccordancewiththeFinancialManagement (Sustainability)Guideline2024forthepurposeoffulfillingthecouncil’sreporting responsibilitiesundertheLocalGovernmentRegulation2012.Asaresult,thestatement maynotbesuitableforanotherpurpose.Myopinionisnotmodifiedinrespectofthismatter.

OtherInformation

Thecouncillorsareresponsiblefortheotherinformation.

Theotherinformationcomprisestheinformationincludedintheentity’sannualreportforthe yearended30June2025,butdoesnotincludethefinancialsustainabilitystatementandour auditor’sreportthereon

Atthedateofthisauditor’sreport,theavailableotherinformationinTownsvilleCityCouncil’s annualreportfortheyearended30June2025wasthegeneral-purposefinancial statements,current-yearfinancialsustainabilitystatement-contextualratios(unaudited), andtheunauditedlong-termfinancialsustainabilitystatement.

Myopiniononthecurrentyearfinancialsustainabilitystatementdoesnotcovertheother informationandaccordinglyIdonotexpressanyformofassuranceconclusionthereon.

However,asrequiredbytheLocalGovernmentRegulation2012,Ihaveformedaseparate opiniononthegeneral-purposefinancialreport.

Inconnectionwithmyauditofthefinancialsustainabilitystatement,myresponsibilityisto readtheotherinformationand,indoingso,considerwhethertheotherinformationis materiallyinconsistentwiththefinancialsustainabilitystatementandmyknowledgeobtained intheauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkIhaveperformed,Iconcludethatthereisamaterialmisstatementof thisinformation,Iamrequiredtoreportthatfact.Ihavenothingtoreportinthisregard.

Responsibilitiesofthecouncillorsforthecurrentyearfinancialsustainability statement

Thecouncillorsareresponsibleforthepreparationandfairpresentationofthecurrentyear financialsustainabilitystatementinaccordancewiththeLocalGovernmentRegulation2012. Thecouncillorsresponsibilityalsoincludessuchinternalcontrolasthecouncillorsdetermine isnecessarytoenablethepreparationandfairpresentationofthestatementthatis accuratelycalculatedandisfreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sresponsibilitiesfortheauditofthecurrentyearfinancialsustainability statement

Myobjectivesaretoobtainreasonableassuranceaboutwhetherthecurrentyearfinancial sustainabilitystatementasawholeisfreefrommaterialmisstatement,whetherduetofraud orerror,andtoissueanauditor’sreportthatincludesmyopinion.Reasonableassuranceis ahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewith theAustralianAuditingStandardswillalwaysdetectamaterialmisstatementwhenitexists. Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorin theaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsof userstakenonthebasisofthisstatement.

Myresponsibilitydoesnotextendtoforminganopinionontheappropriatenessorrelevance ofthereportedratios,noronthecouncil’sfuturesustainability.

AspartofanauditinaccordancewiththeAustralianAuditingStandards,Iexercise professionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Ialso:

Identifyandassesstherisksofmaterialmisstatementofthestatement,whetherdueto fraudorerror,designandperformauditproceduresresponsivetothoserisks,and obtainauditevidencethatissufficientandappropriatetoprovideabasisformy opinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigher thanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentional omissions,misrepresentations,ortheoverrideofinternalcontrol.

Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit proceduresthatareappropriateinthecircumstances,butnotforthepurposeof expressinganopinionontheeffectivenessofthecouncil’sinternalcontrol.

Evaluatetheappropriatenessofmaterialaccountingpolicyinformationusedandthe reasonablenessofaccountingestimatesandrelateddisclosuresmadebythecouncil.

Icommunicatewiththecouncilregarding,amongothermatters,theplannedscopeand timingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesin internalcontrolthatIidentifyduringmyaudit.

31October2025

SriNarasimhan QueenslandAuditOffice asdelegateoftheAuditor-General

Current-year Financial Sustainability Statement

for the year ended 30 June 2025

Contextual ratios (unaudited)

The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2024. The amounts used to calculate the reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose financial statements for the year ended 30 June 2025.

Council controlled revenue is an indicator of a council's financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.

Results indicate consistent generation of operating revenue from rates, levies and charges.

2. Population growth

Population growth is a key driver of a council's operating income, service needs, and infrastructure requirements into the future.

Results indicate increased migration to Townsville.

Asset management

3.

The asset renewal funding ratio measures the ability of a council to fund its projected infrastructure asset renewal/replacements in the future.

Ratio indicates Council is appropriately funding and delivering on the required capital program.

Certificate of Accuracy ( contextual ratios - unaudited) for the year ended 30 June 2025

Certificate of Accuracy (contextual ratios - unaudited)

This current-year financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the Regulation).

In accordance with Section 212(5) of the Regulation we certify that this current year financial sustainability statement has been accurately calculated.

Acting Mayor

Dated this 30rh day of October 2025

Chief Executive Officer

Dated this 30 fh day of October 2025

Townsville City Council

Unaudited Long Term Financial Sustainability Statement

prepared as at 30 June 2025

Measures of financial sustainability

Council's performance at 30 June 2025 against key financial ratios and targets.

Liquidity

1. Unrestricted cash expense coverage ratio > 2 5.8 months months

Ratio N/A for long-term sustainability statement

The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to council to meet ongoing and emergent financial demands, which is a key component to solvency. It represents the number of months council can continue operating based on current monthly expenses.

Operating Performance

2. Operating surplus

The operating surplus ratio is an indicator of the extent to which operating revenues generated cover operational expenses. Any operating surplus would be available for capital funding or other purposes.

The operating cash ratio is a measure of council's ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation, and finance costs.

Asset Management

4. Asset sustainability

The asset sustainability ratio approximates the extent to which the infrastructure assets managed by council are being replaced as they reach the end of their useful lives.

Unaudited Long Term Financial Sustainability Statement

prepared as at 30 June 2025

The asset consumption ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would cost to build a new asset with the same benefit to the community.

6. Asset renewal funding ratio N/A 93.9% Ratio N/A for long-term sustainability statement

The asset renewal funding ratio measures council's ability to fund its projected infrastructure asset renewal/replacements in the future.

Debt

servicing capacity

7. Leverage ratio

The leverage ratio is an indicator of council's ability to repay its existing debt. It measures the relative size of council's debt to its operating performance.

Financial Capacity

8. Council

Council controlled revenue is an indicator of council's financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.

Population growth is a key driver of council's operating income, service needs, and infrastructure requirements into the future.

Financial Management Strategy

Council measures revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient allocation of resources to ensure the most effective provision of services. Council ensures that its financial management strategy is prudent and that its long-term financial forecast shows a sound financial position whilst also being able to meet the community's current and future needs.

Certificate of Accuracy - Long-term Financial Sustainability Statement prepared as at 30 June 2025

Certificate of Accuracy - Long-term Financial Sustainability Statement

This long-term financial sustainability statement has been prepared pursuant to Section 178 of the Local Government Regulation 2012 (the Regulation).

In accordance with Section 212(5) of the Regulation we certify that this long-term financial sustainability statement has been accurately calculated.

Acting Mayor

Dated this 30 th day of October 2025

Chief Executive Officer

Dated this ]O lh day of October 2025